“The banks run the auto industry” Ravi Shanker the lead auto analyst for Morgan Stanley opines. He maintains that it is all about available retail credit, manufacturing capacity matched up to demand and market competition which should heat up due to the weaker yen Honda has $70 million in civil penalties for failing to report deaths,injuries and some warranty claims to the federal government. Equifax reported that auto loan balances have reached an all time high at $975 billon. The 2014 Corvette retains 84.7% of MSRP as a one-year-old used car according to NADA used car guide. This represents the highest retained value for any new or redesigned vehicle. Kelly Blue Book announced best resale awards for 2015 models based on lease residual rates. The brand winners include Subaru and Lexus. Models honored are the Subaru Legacy, Impreza and WRX, Honda Fit and CRV, Jeep Wrangler, Toyota Tacoma, Tundra, Sienna, Camry Hybrid and 4Runner, Mercedes GLK, Lexus GX460, RC350, GS350, RX450h LS460 and LK570, Dodge Charger, Chevy Corvette and Suburban and Camaro Black Book predicts 2017 wholesale and residual values for 2012 models and projects VW Jetta SEL to be worth $9200, BMW X3 – $17800, Nissan Altima S – $8125, Acura TL – $13800, Lexus ES350 – $16525, Ford F150 XLT supercab 2WD – $12150, Ford Explorer XLT 4WD – $12950, Honda CRV LX AWD – $11775, Honda Pilot EXL 4WD – $18375, Chevy Impala LS -$6750, Ford Taurus SEL – $9525. We also have the data for 2010, […]
What’s a Deal? With cheaper gas prices, diesels have actually gotten cheaper and are still high on our value list right now. These are not the stinky and slow diesels of the past but clean burning, fuel sipping and amazingly lusty to drive. They also hold their value way better than the gas engine versions. Great values in just about anything European right now from VW Jettas and Passats to Mercedes GLs are great buys. 2012 and 2013 Mercedes C300 4Matics are so cheap right now and there is a ton of them at the auctions (591 sold in last few weeks at Manheim auctions alone) Chevy Suburbans and GMC Yukons are now approachable and are showing up in credible numbers at great savings when you compare them to new replacement cost. Almost anything that was expensive new other than a near-new Corvette or Range Rover are values. What’s Overpriced? Subarus – every one of them are overvalued due to the shortage of new vehicles – in many cases you can get a Mercedes for the price of a Subaru. Full-size fancy trucks are still bringing crazy money. Jeep Wranglers,Toyota FJ Cruisers and Honda CR-Vs, Toyota RAV4s and highly contented low mileage Asian minivans all hold value. Honda Accords and Civics are overpriced when you compare them to Corollas, Sonatas, Altimas and Camrys. European wagons are in short supply and bring a premium over their sedan counterparts.
This brutal winter has actually created a buying opportunity at the wholesale auctions. Multiple storms have dealers in the Northeast pinched for room for new inventory as well as deadening retail sales energy. These dealers are not showing up at the auctions in search of new inventory when they are having trouble selling and delivering what they already have in stock. This has not only had a stabilizing influence on prices at a time when prices traditionally rise but we are finding that there has actually been a lowering of prices. The lease companies and manufacturers still need to move inventory at auction and the buyers have retreated for the time being. We have been able to take advantage of this market aberration for some fortunate clients so if you are getting ready for something different you might want to give us a shout soon. However, we fully expect rising spring prices to return as the snow melts and folks recharge their buying desires. Hopefully we will have a few more weeks of these abnormally lower prices. Ganley Auto Advisors continues to evolve. We will be opening another office in Boulder Colorado later this spring that will be led by my son Will Ganley who has spent the last five years developing his skills as a technician at a Subaru dealership. Will has been hanging around auctions since he was a kid and has worked with me throughout the years. He will bring his expertise and calm energy to […]
“The industry continues to show incredible discipline when it comes to incentives.” TrueCar president John Krafcik $31997 is the average new vehicle transaction price with $2293 in factory incentives according to Edmunds. GM’s 2014 market share =17.7% as opposed to 24.5% in 2006. Nearly 1.6 million new vehicles retailed in August yielding an annual rate of 17.5 million new vehicles sold. 5% more new vehicles sold year to date in 2014 than in 2013. More trucks,SUVs and Crossovers have been sold so far this year than cars. In September inventories of new vehicles is at the lowest level in the past 12 months -this will not lead to increased incentives. Did you know that Maserati Quattroporte and Ghilibi engine blocks are made in Detriot by Chrysler? NO FOOLING! “Fitch Ratings predicts that used car values to further weaken as off lease and fleet volumes rise and sales of new vehicles continue to be strong” according to Used Car News. LeRoy Walker ,the Edsel King, has sold 2300 Edsels to BF Salvage to be crushed. Don’t worry he still has another 300 of them. Some new vehicle stats in terms of days supply: Mini – 36 days supply, BMW SUVs -30 days,Dodge Caravan – 38 days, Jeep Wrangler -43 days,Ford Mustang -34 days,Ford Escape -39 days, Lincoln cars -99 days,Cadillac Escalade -31 days, Chevy Suburban -36 days,Acura TSX -23 days,Honda Accord -34 days,Honda Odyssey -35 days,Land Rover -18 days, Lexus SUVs -33 days,Audi SUVs -20 days,VW cars -104 days,Porsche SUVs -40 days […]