Wholesale Prices Remain Low!

So what is going on in the markets? This is a very interesting market with some terrific used vehicle opportunities, along with the traditional end of model year sell off for the new 2013s. As we close out August and dig into September there will be some new vehicle closeout sales that might make sense that we should analyze with you. There will also be some deals that might look good at first glance, but could prove to be poor choices down the road. We are here to help you navigate through those decisions.

The new car market certainly heated up in July with Honda, Toyota and GM leading the pack with impressive sales gains over the same period a year ago. July sales were at a 15.8 million per year rate, which is closing in on the pre-recession numbers posted in 2007.

Kelly Blue Book reports that used car prices are falling from the high levels that we began the year with.  “Auction values began an early decline in April and since have declined below levels seen in 2012 and 2011,” according to KBB senior analyst Alec Gutierrez. “We expect this depreciation to continue through the remainder of the year.” Jonathan Banks, NADA’s executive automotive analyst, reports that “a growing supply of 3-year-old vehicles is applying downward pressure on prices for late-model used vehicles.”  Edmunds.com predicted used prices would increase in the spring, hold steady during the early summer months, and then decrease thereafter. You can check this out athttp://www.edmundscom/industry-center/data/used-car-market-quarterly-report.html

According to Manheim Consulting, record-level used car profits have resulted from higher volumes, quicker inventory turns and strong F&I income. Higher profits have also been attributed to the success of franchised dealers selling Certified Pre-Owned units, which are more expensive, yet appeal to consumers due to perceived reliability and warranty protection. The consumer is paying a premium for a vehicle that they hope will be better than one that they will find on the street.  We can help figure out this value proposition andwe should be able to save you some money.