Many of the dynamics in today’s market are eerily familiar to the resale value softness that occurred in the last decade, which ultimately peaked in 2002. At that time, year-over-year increases of off-lease vehicles entering the wholesale market exerted downward pressure on resale prices. It appears that we are on the same trajectory, with off-lease volumes peaking in 2016. What are you doing to prepare for these different market dynamics?
February 11, 2014
If you asked fleet managers what the industry average is for personal use of company vehicles, most would say it is approximately 15-18 percent. But, is it? Most of us will agree that some drivers fudge their personal-use mileage, but no one knows by how much. There is a growing suspicion that personal-use mileage is far greater — perhaps substantially greater — than what the industry accepts as conventional wisdom.
October 16, 2013
When you electronically buy an airline ticket, you do so through an electronic hub, such as Egencia. When realtors electronically list homes for sale, they use a multiple listing service for all other realtors to simultaneously see the property listing. Many see comparable change occurring for the remarketing of vehicles in the wholesale market. The consensus among remarketers is not “if” this will occur, but “when.” And, just as important, most see it happening sooner, rather than later
May 7, 2013
All good things eventually come to an end. So, too, will today’s abnormally high used-vehicle prices. Today's resale values are an anomaly caused by a decrease in used-vehicle inventory in the wholesale market, resulting from the extremely low sales of new vehicles from 2009-2011. You need to educate management that today’s resale values will decline. Otherwise, you run the risk of being management’s future scapegoat for declining resale values due to their misperceptions of the market.
July 13, 2012
The cost to design and build vehicles to meet the higher 2017-2021 fuelefficiency standards will average an additional $2,000 to $6,000 per vehicle. Proponents of the higher CAFE standards argue the higher acquisition costs will be offset by much greater fuel savings. However, is there a diminishing return on cost savings as fuel efficiency increases? Kelley Blue Book thinks so.
December 5, 2011
Today’s high resale values are an anomaly caused by the shortage of used vehicles in the wholesale market due to the extremely low sales of new vehicles during the 2008-2011 timeframe. Nowadays, everyone is a hero when it comes to getting top dollar for their out-of-service fleet vehicles. However, these artificially high prices will ultimately decline as used-vehicle supply increases.
September 13, 2011
Six key trends will determine Class 3-7 medium-duty truck lifecycle costs in the 2010 calendar-year. They are diesel prices, acquisition costs, resale, maintenance costs, replacement tire expense, and environmental regulatory requirements. Here is a forecast of what to expect.
July 14, 2009
October was an extremely difficult month to remarket vehicles in the wholesale market as resale prices took a precipitous drop. Wholesale pricing, based on mixed mileage and seasonally adjusted, declined a record 6 percent in October. The lack of credit to both dealers and retail buyers has been the key catalyst contributing to the downturn in the wholesale market. The market forecast is gloomy until the credit gridlock is resolved.
November 11, 2008
The past two weeks have produced a dizzying string of announcements ranging from Chrysler Financial stopping lease financing, Chase Auto Finance no longer providing lease financing for Chrysler brands, Wells Fargo ending lease financing, all major OEMs decreasing truck production volumes, and HSBC Financial Corp.’s decision to stop funding auto loans. All of which may be good news for fleets remarketing vehicles two to three years from now.
August 7, 2008
A combination of market forces have converged to create a “perfect storm” to drive down resale values for pickup trucks by 15-25 percent. These convergent forces are higher fuel prices, tighter consumer credit, and a stagnant construction market. As a result, the pool of buyers (hence market demand) for used trucks has contracted, putting downward pressure on resale prices.
July 15, 2008
Most fleet vehicles are purchased by subprime buyers; however, these buyers are now finding it increasingly difficult to qualify for used-vehicle loans. The slowdown in the construction market is dampening demand for used pickups, and full-size vans.
February 11, 2008