KBB: Used Supply Shortage Coming to an End?
The vehicle information site said a 1 percent uptick in auction sales volume last year could signal the end of the used-vehicle shortage.
IRVINE, Calif. — In its monthly Blue Book Market Report, Kelley Blue Book said it spotted a 1 percent annual increase in auction sales volume across the country in the fourth quarter 2012. The vehicle information site said the uptick could signal that the used-vehicle shortage that has plagued dealers since 2010 may be coming to an end.
“Although a 1 percent increase is certainly a positive sign, auction volume in the Q4 2012 was still 26 percent lower than in Q4 2007,” the report read. “While analysts don’t expect auction volume to return to levels seen in 2007 and prior anytime in the near future, moving forward they do expect auction volume to remain above level see last year.”
According to KBB, wholesale auctions will likely see an increase of at least 200,000 off-lease units in 2013, and even more in 2014. “With that in mind, auction values likely will continue to decline from current levels.”
Although values dropped modestly in the fourth quarter 2012, used-car values are nearly 5 percent higher today than they were a year ago — even after normalizing for mileage and condition, KBB said.
“The average one- to three-year-old used car currently has an auction value of $16,200 on average; up from $15,500 in January 2012,” stated KBB’s report. “The annual increase in used-vehicle values largely can be attributed to the strength of 2011 model-year redesigns such as the Chevrolet Cruze, Hyundai Elantra and Chrysler 200. These vehicles remain highly desirable and have significantly outperformed the generation they replaced.”
Although values began 2013 on a high note, the firm believes values will likely struggle to keep pace with the robust increases from last year. In the short term, KBB said it expects values to remain relatively flat in January before increasingly slightly in February and March in anticipation of the spring selling season.
“Through the first quarter of 2013, analysts expect only a moderate increase of 0.5 percent in auction values, well short of the 2.5 percent increase during the first quarter of 2012,” stated KBB.
More F&I

Just Do It
F&I managers need training, but instead of resisting application or expecting perfection, they should improve by simply acting on what they learn.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Leading with Purpose
In this video, Trent White explains how understanding your people’s 'why' is a key leadership responsibility of F&I professionals and how that mindset drives dealership engagement, trust and performance.
Read More →
Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →