March 6, 2015

Tidbits

“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, […]
September 26, 2014

Tidbits

“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 […]
February 18, 2014

Tidbits #3

 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 […]
October 17, 2013

Tidbits #3

–       Edmunds predicts 15.5 million new vehicles will be sold in 2013 and 16.4 million
in 2014.   –       Fake reviews on consumer review websites are being cracked down upon by the NY Attorney
General. There are a number of companies that offer “reputation management” services
that write reviews for dealerships and other businesses to increase their desirability.
This amounts to false advertising and unfair business practices – should we be surprised?   –       Hybrids continue to depreciate faster than gas-fueled versions. Midsize trucks – think Toyota Tacoma – will hold value because some popular models
are currently out of production.   –       Full-size cars are getting a lot of action in the used market.   –       Senior citizens are the most likely consumer group to buy a vehicle these days, 
according to a new study by the University of Michigan’s Transportation Research
Institute.   –       Delinquency on auto loans is steadily declining and repossessions have fallen to
a seven-year low.   –       Domestic vehicles are worth more at auction this year than they were in 2013, gaining
2.6 percent, according to Kelly Blue Book.   –       There are more than 17,500 new car franchised dealers and over 45,000 used car dealers
in the USA.   –       According to ALG there will be 84,000 Accords, 65,000 Camrys and 58,000 Altimas 
that will come off of lease in 2014. That’s a lot of cars in that segment  that 
will enter the market next year.   –       The balance of auto loans in August increased 9.7 percent from last year, rising
from $760.8 billion to […]