Auction data reflects a brief pandemic-induced fall, then a sharp increase in prices this summer and autumn. Cars are supposed to depreciate over time, this pandemic has made an exception to this rule. Supply / Demand Imbalance Weak Supply and Shortages Factories shut down 6 to 8 weeks, no new
What is Negative Equity when it comes to an Auto Loan?
Negative Equity also called “Upside down”, is a situation that occurs when a consumer owes more on his vehicle’s loan than the vehicle is worth.
Example:
2018 Honda Accord
Actual Cash Value = $18,500
Balance Owed on Loan = $21,000
Equity = – $2,500 (Negative)
The average negative equity on vehicle trades has been rising steadily for years, reaching a record high in April 2020 at $5,035. This is due in-part to very long finance terms (60 month, 72 months and 84 months).
Negative Equity Comparison 2019 V 2020
The table below shows the average negative equity amount as recorded by dealers at the time of trade-in.
Top 5 reasons why people take their vehicles to a dealership express service for basic maintenance Trust dealership-trained technicians, 44% The dealership is near where I work or live, 30% The price is reasonable, 11% I want parts made specifically for my vehicle, 8% I can make an appointment, 7%
2021 Models Cash Rebate Financing Special Rates Ford EcoSport $ 2,500.00 0 to 8.9% F-150 $ 1,500.00 0 to 8.9% Bronco Sport, Expedition 0 to 8.9% Expedition Max, Explorer 0 to 8.9% Mustang Mach E 0 to 8.9% Lincoln Aviator, Corsair 1.9% to 5.9%
Top 5 Cars Sold in California in 2019 The Tesla Model 3 is the #1 bestselling electric vehicle in California, but it’s also right behind the Toyota Camry on the list of top 5 cars sold overall. Top 5 Makes and Models Sold in California in 2019 Rank Make Model
Auction Retention Index – ARI The Auction Retention Index is a good indicator of market stability. Theoretical retention is at or around 100%, but with market turbulence, this index can greatly fluctuate. If the index is under 100%, wholesale inventory is being transacted below the target price, meaning cars are
Automotive Market Insights September 2020 Wholesale prices showed declines with the overall average market experiencing a negative adjustment. Full-Size Trucks continued to see strong prices for a 17th week in a row. Overall wholesale sold volume was below 2019 levels, but the performance of different channels varied with some overperforming versus the previous year. Retail listing prices increased again,
Wholesale Used Car Prices Hit Plateau in August Wholesale used-vehicle prices soared back this summer after dropping in April following the start of the pandemic. However, signs of this price increase slowing down are starting to appear. Pre-COVID levels (Benchmark) Retail used-vehicle prices up 7% Wholesale auction prices up 15%
Auction Vehicle Inventory Statistics August 2020 There are currently 127,310 vehicles offered for sale on by Manheim dealer auctions in the US. Auction Inventory by Vehicle Type Truck 14,747 SUV 49,423 Car 56,999 Van 6,141 Total 127,310 Below are the statistics of these vehicles by
New Vehicle Sales Projections 2020-2024 Car sales in the United States could range between 10.2 and 12.7 million units in 2020. The car industry was expected to sell about 16.9 million vehicles before COVID but the market outlook has worsened. In 2019, 17 million new cars were sold in the
U.S. light-vehicle sales by nameplate, 6 month comparison of 2019 versus 2020 Percent Drop in New Car Sales First 6 Months 2019 v 2020 (PDF) Chrysler tops the list with a 50% decline in sales. New-vehicle sales in U.S. plummet 34% in Q2 of 2020. Some segments fared better than
Auto Market Report – June 2020 A look at Used Wholesale Price and Used Vehicle Supply Projections Auction Sales Volume and Sales Rates Segment Highlight – Compact Crossover / SUV Volume-weighted, overall car segment values increased 1.54% this past week. All car segments experienced increases, with the most notable increase
Fiat-Chrysler merges with Peugeot projects a 7.9 Million Cars Sold per year This mega-merger between Fiat Chrysler Automobiles (FCA) and Peugeot (PSA) will create the world’s fourth largest automaker after VW, Toyota and Renault-Nissan. Fiat Chrysler, the group behind popular brands such as Jeep, Dodge, Ram and Alfa Romeo, was
Traffic vs Accident Reduction 2020 Less cars on road = a lot less accidents. Vehicle miles traveled nationwide was down 41% in April and projections show up to a 9.4% decrease in 2020. Due to reduced traffic on roads, accidents have dramatically fallen. For each 1% drop in traffic, there’s
The Rise of Contactless Car Shopping in the Wake of Covid Consumers are warming up to the idea of digital retailing as more car dealerships take the car-buying process online during the covid19 pandemic. And customers increasingly say they’d like to handle certain parts of the transaction virtually instead of
Hyundai Sales Down 31% in March 2020 Despite sale increases in January and February 2020, March sales put the quarter in negative territory. One bright spot however is the fact that at -5.4%, Hyundai group’s decline is still half of the average US industry decline of 12% in Q1 2020.
General Motors Rebates April 2020 General Motors Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. Expires April 30. In lieu of rebates, cut-rate financing is available. Year Make Model Cash Rebate up to Special Financing 2020 Buick Regal Sportback $
Top 10 Used Car Dealers in the US for 2019 based on the number of vehicles sold. Top 100 retailers based in the U.S., ranked on 2019 used-vehicle sales units (PDF)
Large Pickup Trucks Sales Least Effected by Covid While most dealers in US are experiencing sale declines as high as 80% in in the second half of March 2020, large pickup truck sales remained flat in the South dropped only 29% in the northeast. Reasons for the low decline in
US Car Dealer Rankings for 2019 Top 20 Car Dealers with the Most Increase in the Number of Stores – 2019. Dealership group Number of dealerships – 2019 Number of dealerships – 2018 Store Increase Percent Increase 1 Ciocca Dealerships 20 14 6 42.9% 2 Kahlig Auto Group
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