The used car business is as hot as ever, with vehicle sales up as much as 4% from this time last year, and 2% from a month ago, according to ALG, a subsidiary of TrueCar. ALG’s Chief Industry Analyst stated in their monthly report that, “While this heightened demand is creating upward pressure on used retail prices, it is making it a great time for consumers to get top value on a trade-in on popular used vehicles.”
In addition to getting top dollar on trade-ins, consumers who just want to sell their vehicles can also benefit from the high-demand market as well.
Wholesale used-vehicle prices roared back this summer after plummeting in April following the start of the pandemic. Though still high, they are showing signs of cooling off, according to these J.D. Power numbers comparing used-vehicle prices for the week ended Aug. 23 with:
Prices for the week ended Aug. 16
- Retail used-vehicle prices up 0.4%
- Wholesale auction prices down 0.7%
- Retail used-vehicle prices up 7%
- Wholesale auction prices up 15%
- Retail used-vehicle prices up 8%
- Wholesale auction prices up 35%
This week on the Mobility Tech & Connectivity Show we will be focused on the used car business entirely. Kicking things off will be myself and Jay as we run through recent developments in the used car business, including an update on the Hertz bankruptcy (see below).
We will also talk briefly about Jay’s show last night on ATI about home delivery.
And instead of a featured guest interview this week, our plan is to dive right into discussion mode with our Used Car Marketing Strategies discussion panel (details below). One thing we will be looking into is the increasingly significant role that Facebook Marketplace is having in the used car business, and a key best practice leading to success there, as suggested by the consumer vehicle acquisition firm – Vehicle Acquisition Network.
The Mobility Tech & Connectivity Show
Airs Live Wednesday September 16th at 2 o’clock CST (US & Canada)
2:00 – Live Stream Begins
2:05 – Industry News with Jay & Ryan
2:15 – Used Car Marketing Strategies Discussion Panel Begins
3:00 – Closing remarks and announcements
Used Car Marketing Strategies Discussion Panel
For our Auto Retail panel, this week, the theme is – Used Car Marketing Strategies.
Our lineup of panelists include Dynamic Beacon Co-founder Ben Koller who will be showing us ideas that his company is implementing with dealers to help maximize the sale of used vehicles.
Ty Thompson from CTS Business Coaching will be on the panel providing an update on what he sees and things about the dealer auction business right now.
And kicking off the panel discussion is Mike Phillips, our Dealer Advocate from McCloskey Motors in Colorado Springs.
Sign Up to Be Part of the Discussion and Join the Q&A
Want to be part of the live discussion? You can. The show is facilitated via Zoom and streamed live on YouTube. You can be part of the live discussion and the Q&A by registering with Fixed Ops Strategies, one of 6 different webcast programs we offer on AutoConversion as part of the Auto Retail Marketing Mastermind Program.
Also In the News…
Used Vehicle Sales Up Year-Over-Year for August 2020
Used vehicle sales for August 2020 are expected to reach 3.6 million, up 4% from a year ago and up 2% from July 2020.
“While retail sales for most automakers are up month-over-month, Kia is setting itself apart from the pack, as one of the only automakers that is up year-over-year,” said Nick Woolard, Director of OEM Analytics at TrueCar. “Most of Kia’s portfolio is back to selling at pre-Covid-19 levels. Despite the Telluride, one of their most popular models, being in short-supply, Kia’s strong lineup with some of their newer SUV products such as the recently launched Seltos, is contributing to their strong gains.”
KAR posts $32M net loss in Q2, but CEO expected worse
KAR Global reported a net loss of $32.3 million for the second quarter, vs. a net income of $27.4 million in the year-earlier period, on revenue that fell 42 percent to $419 million. Its adjusted earnings before taxes and depreciation fell 41 percent to $80 million.
The company’s business was brought to a halt March 20, when it suspended all auction sales in North America because of the coronavirus pandemic. It began doing simulcast-only sales in select markets April 6.
Its auction volume was minimal at the beginning of April, and the company prepared for a gradual recovery over the rest of the year.
KAR Global to buy BacklotCars for $425 million
AR Global has agreed to buy BacklotCars Inc., an online dealer-to-dealer vehicle wholesaling platform, for $425 million. The purchase is expected to be complete by the end of the year, pending legal and regulatory approvals.
KAR sees the acquisition as one that will diversify its digital offerings while also building on the foundation of TradeRev, the auction firm’s mobile vehicle-trading platform.
Ohio approves tax credit for Carvana distribution center near Cleveland
Carvana expects to create 400 full-time positions near Cleveland at a new inspection, reconditioning and distribution facility that has been approved for a state tax credit.
The Ohio Tax Credit Authority on Monday approved an eight-year, 1.4 percent tax credit to Tempe, Ariz.-based Carvana for a project that the state said would create $13.3 million in new annual payroll. As part of the tax credit agreement, the authority requires the company to maintain operations at the project location for at least 11 years. The authority said in a project overview that Carvana’s fixed asset investment would go toward “building and land costs, along with new machinery and equipment.”
An authority spokeswoman wrote in an email that the estimated value of the tax credit for Carvana is $1.345 million. The actual value of the tax credit is based on jobs created and new payroll tax generated, as verified by the state.
Ohio is competing with Indiana, Oklahoma and Tennessee for the proposed project, and the tax credit “will help ensure the proposed project moves forward in Ohio,” the authority said.
Hertz’s ex-CEO will repay $2M over misstatements in 2013
Mark Frissora, the former chairman and CEO of Hertz Global Holdings Inc., will return nearly $2 million in incentive-based compensation to settle a U.S. regulator’s claims that he played a key role in causing the now-bankrupt car-rental company to file inaccurate financial statements in 2013.
Cherokee Media Group’s All-Digital Used Car Week Set for November
CMG’s annual Used Car Week will be an all-digital endeavor this year, with content spread across four weeks this fall. Here’s how that shakes out.
The action begins the week of Nov. 16-20, with the Auto Fin Con and the National Auto Finance Association’s Annual Non-Prime Auto Financing Conference, which will run concurrently.
The week of Nov. 30-Dec. 4 will be the Repo Con.
Next, the Pre-Owned Con will run Dec. 7-11.
Lastly, the event will close with the flagship of Used Car Week, the National Remarketing Conference, which runs Dec. 14-18.