Editor’s Notebook: Haig Report Confident in Profitable Used Sales, Why Auction Direct USA Entered CPO
By Jon LeSage, Editor, Used Car Market Reports
Here’s a few significant remarketing news developments during the past week:
- While the higher supply of used vehicles is something to watch, Haig Partners isn’t too worried. “A higher supply should help boost dealer profits since, for some franchises, there is more profit in used cars than new cars,” according to a recently released Haig Report. While supply is increasing and retail used vehicle pricing is more competitive due to internet listings, gross margins are getting better for publicly traded dealer groups. It might have to do with the sales mix skewing more towards luxury vehicles, or because of increasing sales in higher margin trucks and SUVS, the report says.
- Why did Auction Direct USA decide to enter the certified pre-owned (CPO) vehicle market through its agreement with NIADA? CEO Todd Hoagey thinks there are two winning factors: CPO is more “customer-centric,” and gives car shoppers more options in terms of vehicle choice; and it makes total sense given that consumer demand in the market for CPO is growing quite a bit.
- Black Book editors are seeing more disparity between car and truck used prices. In this week’s report, editors identified a greater number of car segments with greater week-over-week depreciation. Trucks are going in the opposite direction, with seven truck segments showing either unchanged or positive increase on the week.
- NADA Used Car Guide refreshed its website, adding new features including a used car and truck blog with product reviews for passenger vehicles and commercial vehicle trending. Upcoming events are listed, including the Auto Finance and Compliance Summit taking place May 18–19 in San Diego, Calif.