Used Vehicle Market Takes Solid Step Toward Recovery

11/05/2020 12:18 PM

The used vehicle market takes a solid step toward recovery with consistent improvements in wholesale volume and prices. Wholesale auction sales remained depressed through the week ending May 3, however, sales continue to recover as key industry stakeholders come back online and dealers progressively plug holes in retail inventory. Sales exceeded 50,000 units for the week, a figure around 50% of pre-virus expectations but well above the ~80% delta versus initial expectations recorded in early April.

COVID-19 Update Report- Direct to Dealer

04/05/2020 01:57 PM

Our analysis of how direct-to-dealer wholesale prices have performed since the start of the virus situation. 

Compared to wholesale auction prices over the same period, reveals that direct to dealer / upstream wholesale prices have held up far better than prices at physical wholesale auctions. For the week ending April 26, direct-to-dealer wholesale prices were down around 6% versus the beginning of March, a relatively small decrease when compared to the 14% decline recorded for wholesale auction prices over the same period.

Residual Value All-Stars: Luxury Vehicles

Vehicles that retain a strong residual value offer an unmistakable benefit to automakers and consumers alike. Such models allow for a competitive cost of ownership and leasing advantage, with some being better values when it comes to leasing.

One of the biggest factors in the total cost of a lease is the vehicle's residual value. This is especially important on the luxury side of the market because leasing tends to be more popular in this sector than on the mass market side.

Residual Value All-Stars: Mass-market

Vehicles that maintain high residual/resale values deliver unmistakable benefits to all segments of the automotive ecosystem.

Stronger values give manufacturers the ability to offer the market a competitive total cost of ownership advantage that can have a tangible effect on consumers and dealers alike. But what vehicles have the best residual values today?

Which ones, among the mass market brands, are at the top?

Used Vehicle Market Continues Sluggish Start to 2019

The used vehicle market continued its sluggish start to the new year, as a result the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index declined 1.3 points – relative to January – to 116.1. February’s decline marked the sixth consecutive month of declines in the used market and is a trend we should expect to see more of throughout the course of 2019 as used vehicle prices are expected to decline relative to 2018.

EV Pulse: Tesla Model Y Unveiled

Tesla unveiled their Model Y SUV last week. Pricing starts at $47,000 and production will start sometime in 2020. There will be a $39,000 version as well but it will not be available until later down the road. The Model Y will be the fourth vehicle in the California automaker's lineup, the new SUV has the potental to be the most successful model Tesla sells.