In 2013 new vehicle sales increased for the 4th consecutive year – NADA predicts 2014 to be a banner new car year with sales of better than 16 million. Rental fleets have been adding to their inventory at record levels – the highest vehicle procurement pace since 2007 To end 2013 Subaru had the fewest vehicles in stock of any manufacturer Every manufacturer had fewer cars in stock on January 1, 2014 than they did on December 1, 2013. A Morgan Stanley analyst noted that since new car sales dipped in December to a 15.4 million sale annual rate from 16.4 million rate in November 2013, the market is “in an increasingly aggressive incentive environment”. There was a new high in December for outstanding vehicle loan balances and a sharp increase in subprime repossessions – this could eventually lead to credit pullback and higher interest rates. Repo volumes increased 5% in 2013 to 1.37 million vehicles According to NADA, in 2013 luxury cars depreciated 21%, large suvs and pickups depreciated 8.4% while compact and midsize cars were at 17.2% and midsize suvs hit 15.7% Toyota and BMW agree to develop a joint sports car platform – who would have predicted that alliance even 5 years ago? Leasing at 3.2 million units in 2013 hit it’s highest output since 2000 – this bodes well for future decreases in used car prices due to the burgeoning inventories of end of lease units. This will give all of us opportunities. NADA reports that […]