The year-over-year drops in wholesale prices in February, March and April continued in May, with wholesale prices dropping 2.8 percent vs. April and 4.5 percent from a year ago.
Used-car buyers are leaving their markets in greater numbers to locate the vehicles they want and at the right price. In May, CNW spotted a 32.6 percent increase in the number of used vehicles acquired outside of the buyer’s DMS.
Last year, more American households went without a car. It’s a trend that started in 2007, and one that could make fleet sales even more important in the future.
CNW Research expects May deliveries to rise 6 percent vs. the same period last year, but says there are some worrisome trends to watch.
Used-car buyers are looking to spend 3 percent more than in the previous survey, and new-car shoppers are expected to spend 2.9 percent more.
Used-vehicle prices saw a bit of daylight in the opening weeks of March, with CNW Research reporting a month-over-month increase in transaction prices. Wholesale prices, reports ADESA, are softening.
Manufacturers offered an average of $4,162 in incentives per vehicle in February, while the average MSRP of vehicles sold this month rose 3.7 percent vs. last year.
A mid-month report found that floor traffic at dealerships was up nearly 3 percent, with closing ratios ahead of last year by more than 2 percent. According to CNW, this indicates a possible 6.5 percent sales gain for the full month.
ADESA Analytical Services reported this week that wholesale used-vehicle prices could resume the general softening pattern that began around mid-2012 and before Superstorm Sandy.
Floor traffic is up, as are deliveries, but CNW reports that sales in January are still off last year’s pace. But the numbers also show that April to May could be big months for dealers.
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