Looking ahead, Webb said 2014 will reveal “the next evolution of the wholesale marketplace,” as declining margins, increasing wholesale volumes and rising market pressures will require new tools and strategies. For auction participants, this means the ongoing adoption of technologies that allow them to buy and sell vehicles through online platforms that provide simultaneous, multi-platform buying and selling opportunities.
The 42-page report, co-written by Manheim Consulting Director Scott Hatmaker, examines data and trends in all sectors of the used car marketplace, including chapters on dealers, rental, leasing, repossessions, fleets, international wholesaling and salvage auctions.
Among the highlights:
- New vehicle sales increased for the fourth consecutive year, and franchised dealers sold a record number of certified pre-owned vehicles.
- Increased financing availability balanced out inventory acquisition challenges for independent dealers.
- New vehicle sales into rental were their highest since 2007.
- Low fleet depreciation and inventory funding costs led to another record year despite a 1% decline in revenue per vehicle.
- New lease originations were up to 3.2 million, highest since 2000.
- Increasing off-lease volumes in the years ahead will pose challenges for remarketers and opportunities for dealers.
- Commercial and government fleet vehicle purchases increased for the fourth straight year.
- New vehicle sales into fleets are expected to level off near 900,000 by 2015.
- Wholesale volumes and prices increased in the U.K., while at the retail level both new and used vehicle prices improved.
- Emerging markets such as China and India will experience rapidly increasing used car sales in the years ahead.
- Prices and volumes increased modestly at salvage auctions in 2013.
- An increasing number of dealers are purchasing and repairing salvage-titled vehicles to sell to retail buyers.
The Report is available in PDF format by visiting the Used Car Market Report tab within the Manheim Consulting site, located at .