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Saturday, 10 February 2018 21:02

Group 1 Sees Strong Fourth Quarter

Used-car operations ended 2017 with a strong performance for Group One Automotive Inc. 
Retail used vehicle revenues increased 8.9 percent on 5.4 percent higher unit sales in the fourth quarter. Retail used vehicle gross profit increased 3.8 percent, to $40.5 million. 
For the year, retail used vehicle gross profit decreased 2.7 percent on a revenue increase of 1.5 percent. Group 1 retailed 129,933 used vehicles in 2017, a 0.6 percent increase over 2016.
Published in Finance
Monday, 29 January 2018 17:34

New Car Sales Fall as Incentives Rise

For the second consecutive year, the new vehicle retail sales pace in January is expected to fall from year-ago levels, according to a forecast developed jointly by J.D. Power and LMC Automotive.  The SAAR for retail sales is expected to be 13.7 million units, down 150,000 from a year ago.  Retail sales are projected to reach 893,900 units, a 2.7 percent decrease on a selling day adjusted basis compared to January 2017.January has an extra selling day compared with January 2017.Through mid-January, 2018 model-year vehicles accounted for 73 percent of retail sales, an increase of more than 11 percentage points from December.  Average transaction prices so far in January have risen to $32,169, the highest level ever for the month of January.  This means that while sales will fall on a selling day adjusted basis, the total value of new vehicles purchased will increase by just over $1 billion from last year's level.Incentives as a percentage of MSRP are at 10 percent so far in January, exceeding the 10 percent level for the 18th time in the past 19 months. Trucks account for 67 percent of new-vehicle retail sales through Jan. 21 - the highest level ever for the month of January - making it the 19th consecutive month above 60 percent. Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, was 71 through Jan. 21. Fleet sales are expected to total 259,000 units in January, down 3.6 percent from January 2017.  Fleet volume is expected to account for 23 percent of total light-vehicle sales, flat from last year.
Published in Dealers
Wednesday, 17 January 2018 01:12

Used Car Sales Top List of Complaints

Residents of Ohio complained to their attorney general about used car sales more than any other category.
Of the more than 22,000 consumer complaints filed in 2017, some 3,750 concerned used-car sales.
The next highest category, shopping online and in stores, had about 1,170 complaints.
The Consumer Protection Section of the attorney general’s office tracks complaints in several general categories for reporting purposes. In 2017, the top category overall was motor vehicles.
Published in Dealers
Black Book saw its Used Vehicle Retention Index fall in December to 114.1 from 115, its first decline since August. The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on two- to six-year-old used vehicles, as percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition. The index offers an accurate, unbiased view of the strength of today’s used vehicle market values.After rising for three straight months, the index fell largely due to higher depreciation recorded for both car and truck segments. December saw higher depreciation on a mix of both car and truck segments, led by full-size luxury CUV/SUV (2 percent); mid-size luxury CUV/SUV (1.9 percent); full-size cars (1.7 percent); compact crossovers (1.7 percent) and compact cars (1.4 percent).
Published in Dealers
Friday, 05 January 2018 00:18

Manufacturers See Strong CPO Sales

A pair of manufacturers reported increased certified pre-owned sales for 2017.Porsche Approved Certified Pre-Owned vehicle sales in the U.S. were at 2,153 units in December, a 24.6 percent increase over December 2016. For 2017, CPO sales were up 12.5 percent, with 19,104 deliveries.Mazda reported CPO sales of 3,858 vehicles in the month of December, marking an increase of 20.8 percent year-over-year. Full-year sales resulted in a record CPO year for MNAO, posting year-over-year sales growth of 17 percent with 43,730 vehicles sold.
Published in Finance
Monday, 01 January 2018 17:42

Small Business Expect Flat End to Year

Small businesses\' appetite for financing has weakened in the second half of the year, along with their revenue outlook.That\'s the finding of a survey of small companies by researchers at Pepperdine University\'s Graziadio School of Business and Management and Dun & Bradstreet Corp. 
The companies questioned by Pepperdine and Dun & Bradstreet said they expect slower annual revenue growth. Owners with revenues of less than $5 million forecast a 9.3 percent gain,
Published in Finance
Tuesday, 26 December 2017 23:13

New Car Sales Dip, Incentives Rise

For the eighth time this year, the new vehicle retail sales pace in December is expected to fall from year-ago levels, according to a forecast developed jointly by J.D. Power and LMC Automotive. 
The seasonally adjusted annualized rate (SAAR) for retail sales is expected to be 14.6 million units, down 350,000 from a year ago. Retail sales are projected to reach 1,305,800 units, a 2.6 percent decrease on a selling day adjusted basis compared to December 2016.
The average new-vehicle retail transaction price to date in December is $32,933, a record for the month, surpassing the previous high for the month of $32,082 set in December 2016.
Consumers are on pace to spend $43.1 billion on new vehicles in December, down nearly $1.6 billion from last year\'s level.
Average incentive spending per unit to date in December is $4,302 per unit, surpassing the previous record of $4,188 set in November. 
Spending on trucks and SUVs is $4,265, up $418 from last year. Spending on cars is $4,377, up $98.
Incentives as a percentage of MSRP are at 11.2 percent so far in December, exceeding the 10 percent level for 17th time in the past 18 months.
Trucks account for 68 percent of new-vehicle retail sales through Dec. 17 - the highest level ever for the month of December - making it the 18th consecutive month above 60 percent.
Days to turn, the average number of days a new vehicle sits on a dealer lot before being sold to a retail customer, is 72 through Dec. 17.
Fleet sales are expected to total 286,000 units in December, up 0.8 percent from December 2016. Fleet volume is expected to account for 18 percent of total light-vehicle sales, flat from last year.

Published in Dealers
Thursday, 14 December 2017 00:43

Classic Sale Prepares for Major Event

The fourth weekend in March, GAA Classic Cars in Greensboro, N.C., will run a major classic car sale. The sale, which takes place March 22 through 24, offers vehicles from Jerry and June Smith of Eatonton, Ga., and the Memory Lane Museum of Mooresville, N.C. The run list is expected to include more than 200 cars, 30 motorcycles and thousands of pieces of memorabilia. This will be a no-reserve auction.
Published in Auctions
Friday, 01 December 2017 14:02

Auto Sales Mixed Across the Country

Auto sales were mixed but, on balance, steady in the last few months, according to the latest Beige Book from the Federal Reserve. Dealers in upstate New York reported that demand for new vehicles remained fairly robust in October but not quite on par with September's brisk levels. However, scattered increases were reported in used vehicle sales. Vehicle inventories were said to be a bit on the high side but mostly at satisfactory levels. Retail and wholesale credit conditions have remained favorable, according to dealers.Auto dealers in the Philadelphia district reported slight declines overall in year-over-year sales this period, a retreat from the modest increases during the prior period. Dealers were hopeful for stronger sales at year-end, Dealers reported that manufacturers continued to provide incentives for dealers to sustain sales.  Growth in auto loan volumes was stronger. Year-to-date new motor vehicle sales through September rose 2 percent in the Cleveland district compared to those of a year ago. That said, auto dealers reported that they are starting to see a slowing in demand after seven consecutive years of gains. Indirect auto lending remained relatively strong.Results were mixed in the Richmond district.A South Carolina auto dealer reported robust growth. However, a Virginia auto dealer reported a drop in sales of high-end vehicles.Recent hurricanes impacted sales in a couple of districts.Auto sales in Dallas were still elevated, but the initial post-hurricane surge had begun to recede.Post Hurricane Irma, Atlanta automobile dealers noted an increase in the momentum of auto sales.Demand for auto finance in Chicago edged down, with contacts noting an uptick in delinquencies in auto loan payments. An auto dealer reported that credit had tightened noticeably for buyers with credit scores at the lower end of the subprime category. Credit card volume increased slightly and quality was unchanged.Multiple auto dealers in the St. Louis district reported a decline in sales, which have failed to meet their expectations during 2017. Memphis and Louisville dealers noted a shift in demand away from used vehicles.Demand for auto loans declined in the district for a second straight quarter, though bankers anticipate that auto lending standards could loosen modestly next quarter.Auto sales continued to fall moderately in the Minneapolis district and were well below year-ago levels. Dealer contacts anticipated a moderate pickup in sales for the months ahead.
Published in Dealers
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