Manheim Auctions on March 20 unveiled its 2001 Used Car Market Report (UCMR), declaring that strong vehicle quality, a surge in immigration and household formation, and a highly efficient remarketing system indicate that used-vehicle transactions could increase by more than 14 percent over the next decade.

The release of the 48-page report at the Conference of Automotive Remarketing (CAR) comes on the heels of a 16-page “executive digest” version of the UCMR that was released at the National Automobile Dealers Association (NADA) convention in early February. The complete report expands on topics covered in the executive digest and explores additional aspects of the used-car industry.

“Our objective with the Used Car Market Report is to provide as much useful information as possible to anyone whose work is impacted by the used car industry,” said Tom Webb, chief economist for Manheim Auctions and author of the report. “The incredible amount of information available to Manheim as the world’s largest auction company gives us every piece of data imaginable to produce what we think is the definitive look at our industry.”

Among the facts highlighted in the report -- which covers both the retail and wholesale sides of the used car industry and includes detailed price and volume analyses of various segments of the industry -- are the following:

o Total used vehicle sales in the U.S. reached a near-record 41.6 million units in 2000, while more than 120 million used-vehicle transactions were recorded worldwide. Webb predicts that market conditions bode well for the U.S. used-vehicle market to grow by more than 14 percent in the next decade, reaching annual sales of more than 47 million units.

o North American auto auctions sold nine million units consigned from dealers or remarketed for consumer lease firms, manufacturers, daily rental companies and fleets.

o While used-vehicle sales exhibit more year-to-year stability than new-vehicle sales, used-vehicle prices are more volatile. This is because prices are the mechanism for the used-vehicle marketplace to correct disparities between supply and demand.

o The U.S. vehicle population (now at approximately 213 million) has grown faster than expected in recent years, due primarily to unexpectedly high immigration.

o Vehicles over 10 years old are the fastest growing segment on the road, a testament to the improving quality of vehicles.

o While the U.S. remains the most motorized country in the world, its share of the total worldwide vehicle population has declined from 70 percent in 1950 to less than 30 percent today.

o The Internet continues to be used more as an informational tool than a transaction mechanism for new and used vehicle shoppers. Nearly half of customers who research vehicles online said they didn’t buy online because they preferred interacting with a dealer.

o Franchised and independent dealerships posted record profits in 2000. In 11 of the last 12 years, the net return on used-vehicle sales has exceeded that of new-vehicle sales for franchised dealers.

o Wholesale auto auctions continued to grow in 2000 and the revenue generated by the auctions’ many ancillary businesses grew at an even faster rate.

o More than two million off-lease units were sold through auctions last year, and that volume is expected to increase in 2001 and 2002 as the record number of leases written in 1998-2000 reach end-of-term.

o Rental risk vehicles increased to 37 percent of total daily rental sales, up from 28 percent in 1999, the largest shift in history.

The 2001 Used Car Market Report relies on proprietary research as well as data from a number of industry resources. The UCMR was originally conceived in 1996 by ADT Automotive, the auction company acquired last year by Manheim Auctions.

About Manheim Auctions

Manheim Auctions has been involved in the wholesale automobile auction industry for more than 55 years. With locations in the United States, Canada, Puerto Rico, France, the United Kingdom, Australia, and New Zealand, the company has as its goal helping dealers succeed and to assisting auto manufacturers, fleet and lease companies, and banks sell their used car inventories efficiently and effectively.

The company also offers transaction, reconditioning and certification services, managed remarketing, vehicle transportation, dealer floor planning, retail inspection, and government auction services.

Manheim Auctions is a wholly owned subsidiary of Cox Enterprises, Inc., with more than 34,000 employees at its 126 auctions and related businesses. It facilitates wholesale and retail used car transactions on the Internet through its Manheim Interactive and AutoTrader.com lines of business.

Manheim Auctions’ corporate headquarters is in Atlanta, and its Web site is www.manheimauctions.com.

Additional copies of the UCMR can be obtained by calling the Manheim Auctions marketing department at (800) 777-2053, or by e-mailing Tom Webb at thomas.webb@cox.com.