Current New Vehicle Market

CompOrange04GT

Anyone have a strap on my girl can use on me?
Established Member
Joined
Jul 26, 2011
Messages
6,680
Location
New Mexico
You get tired of vehicles fast

I do. Mostly cause I never drive them.

Like I feel like I need it.. I get it, and I’m like.. why tf..

I’ve had the Titan maybe 4-5 months.. I think I put 1000 miles on it
 

me32

BEASTLY SHELBY GT500 TVS
Moderator
Premium Member
Joined
Sep 6, 2005
Messages
17,903
Location
CA,NorCal
I do. Mostly cause I never drive them.

Like I feel like I need it.. I get it, and I’m like.. why tf..

I’ve had the Titan maybe 4-5 months.. I think I put 1000 miles on it
The one good thing is as the last year you haven't lost anything. Just kinda flip for another one. Im assuming you have a work vehicle which is why you dont need a personal vehicle all the time.
 

CompOrange04GT

Anyone have a strap on my girl can use on me?
Established Member
Joined
Jul 26, 2011
Messages
6,680
Location
New Mexico
The one good thing is as the last year you haven't lost anything. Just kinda flip for another one. Im assuming you have a work vehicle which is why you dont need a personal vehicle all the time.
Exactly. Basically drove a car for free. I got the Shelby before shit went nuts so that has put me ahead since.

Yeah I have a 19 F250 I can use whenever I want. And it’s comfy as hell and I don’t pay for the diesel.

Websites are hard to get money on. They range between 26-31 for the Titan. I might just go to the local Nissan dealership this week.

Hell I still have the 350z I haven’t driven in 4 years
 

Lambeau

Superfleck Moonbird
Established Member
Malt Liquor Mafia
Joined
May 13, 2010
Messages
4,519
Location
Rockwood Lodge
My daughter just bought a new Jeep Compass High Altitude and got a $1200 discount.
What color?
It has the 2.4, 4 cyl?

The recent redesign is outstanding imho.
1641787363293.jpeg
 

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
18,447
Location
Missouri
I'm starting to piece together a theory.

Is used car supply at some crazy all time low...or

Has the proliferation of online used car conglomerates artificially bought up the float and restricted supply

Ie... is this carvana, vroom, trucar etc... manipulating what used to be a dealership/private sellers market.
Honest question.

Tin foil thoughts...haha


Used inventories are lower for a lot of reasons, none of it artificial. People can't get new cars, so they aren't trading in their current for new ones. Rental companies can't get new cars so they're keeping what they have, and buying used vehicles with low miles to complete their fleets.
 

Weather Man

Persistance Is A Bitch
Established Member
Premium Member
Joined
May 18, 2012
Messages
18,964
Location
MN

General Motors plans to launch online car marketplace this spring

GM +0.32%Jan. 11, 2022 2:17 PM ET2 Comments
  • General Motors Company (GM +0.2%) is launching an online used vehicle market this spring called CarBravo. While the platform is expected to largely facilitate sales to dealers, it places GM in closer competition to online sellers like Carvana (CVNA +2.9%), CarMax (KMX -0.7%) and Vroom (VRM +5.7%).
  • The new site is expected to debut this spring with Chevrolet, Buick and GMC dealers offering GM-branded vehicles as well as used vehicles from other automakers.
  • General Motors already sells online to consumers directly through its website where a GM Hummer EV can be reserved in a few clicks.
  • The biggest GM news this year is the boost in orders for BrightDrop electric delivery vans.
 

Weather Man

Persistance Is A Bitch
Established Member
Premium Member
Joined
May 18, 2012
Messages
18,964
Location
MN
Popular Mechanics

Does Anyone Even Want an Electric Car?​

John Pearley Huffman - 5h ago

Whatever the technological promise or pitfalls of electric vehicles, the real challenge lies in getting consumers eager to buy them. And that’s proven to be at least as difficult as making batteries last and building out a comprehensive charging infrastructure. A new report from the big-time, grownup-pants Deloitte consulting firm indicates just how big an undertaking that is proving to be.
Deloitte’s “2022 Global Automotive Consumer Study” goes into granular detail about the buyer expectations that will drive the automotive market in the coming years. It’s all based on a survey of 26,000 consumers in 25 countries. Road & Track has been reliably informed one of those countries is the United States, which is still located in North America. The whole report is available at this link as a PDF.

Want more stories like this? Join Pop Mech Pro.

Much of what Deloitte reports is unsurprising. People still vastly prefer personal vehicles over public transportation; are willing to embrace high technology as long as they don’t have to pay for it; still want to buy new vehicles in-person and not over the internet; and are fine with electric vehicles as long as they’re affordable and at least as good as those relying on internal combustion.


The big insights come with the subject of intentionality. That is what consumers expect to buy next. In the U.S., fully 69 percent of consumers expect their next vehicle to be powered by internal combustion. Another 22 percent will go for some sort of hybrid. But still, amid all of this, only about five percent of Americans expect their next vehicle will be a fully-electric, battery-fueled machine.
“Buyers expect their vehicles to be affordable,” explains Ryan Robinson, Deloitte’s Automotive Research Leader. “Fully 74 percent of those intending to buy an electric expect their next vehicle to cost less than $50,000. With the average price of a new vehicle already approaching $40,000, that’s a very narrow band for electrics.”
Right now, many of the electrics on the market are what Robinson describes as “halo” products. That’s to say premium vehicles that attract attention and sell at high prices, but aren’t intended to sell in huge volumes to average buyers. Will there be affordable and attractive electrics? Good question.
 

Attachments

  • 1642033598006.png
    1642033598006.png
    68 bytes · Views: 28

13COBRA

Resident Ford Dealer
Established Member
Premium Member
Single Barrel Sirs
Joined
Jun 4, 2012
Messages
18,447
Location
Missouri
COX Automotive said:
Our team held the quarterly Manheim Used Vehicle Value Index call last week. We reviewed the used-vehicle market performance through the final quarter of 2021 and provided our forward-looking view of the market into 2022.

A key topic in the discussion, of course, was the elephant in the room: Has the recent run-up of used-vehicle prices set the market up for a crash in 2022?

There is no doubt that last year was a remarkable one for the market. As my colleague Kevin Chartier, vice president of Manheim Consulting, noted during the call, “2021 was the perfect storm: massive financial stimulation thrown into a re-opening market, just as new-vehicle availability collapsed.” In those conditions, it’s no surprise used-vehicle values ended the year well into record territory leading some industry analysts to call for a pending “crash” of used-vehicle prices.

But here’s the bottom line: The fundamentals of the market do not support such a scenario.

The core argument behind the crash scenario seems to rest on the premise that retail used-vehicle prices and retail new-vehicle prices are severely out of whack. But in fact, the relationship—the gap between new and used—is not very far from the range experienced within the last decade.

In 2019, the average new-vehicle price was 179% of the average used-vehicle price. In 2021, the average was 163%. The gap in 2021 narrowed because used-retail prices increased 25% while new-vehicle average transaction prices (ATPs), according to our Kelley Blue Book team, increased around 14% in 2021.

The gap between new- and used-vehicle prices is not static, as it varies substantially over time. In 2014 it averaged 167%. This was following a very strong spring for used-vehicle values. The market did not see a major or fast market price correction as a result. It merely saw 24 months of above-average depreciation in the second halves of 2014 and 2015 and much of 2016, which was also when the new vehicle market was at peak supply and demand started to weaken.

It is our view that used-vehicle prices are not substantially out of alignment with new vehicle prices. Going forward, we expect used vehicles to depreciate in 2022. New-vehicle prices, however, are likely to see continued above-average inflation, as inventory levels improve but remain historically tight, and the mix of new vehicles produced favors expensive SUVs and trucks and new electric vehicles. That means, by year-end, the relationship between new and used prices could be back within historical norms and there would be no basis to judge values as being out of alignment.

A significant crash in used-vehicle prices—a drop of 20% to 30%, as one well-publicized report suggests—is highly unlikely. History tells us that a decline of more than 10% is rare indeed. Why? As prices fall, demand builds. In 25 years, we have never seen a decline of as much as 13% within a year. A few points to consider:

  • Following the 9/11 terrorist attacks in New York City in September 2001, used-vehicle values declined 5.7% over 2 months as the economy struggled to get back on its feet. Values fully recovered within 6 months.
  • In the lease implosion in the fall of 2002, used-vehicle values declined 11.3% over an 8-month period and took 35 months to fully recover. This, however, was a relatively unique market problem, with far and away too much new and used supply.
  • In 2008, when the global financial system was close to collapse, used-vehicle values declined 12.6% over 3 months. Values took 7 months to recover.
  • In 2020, at the start of the pandemic, when the economy came to a standstill, values declined 10.1% in 1 month and were fully recovered 3 months later and headed into record territory.
The fundamental conditions are simply not in place to deliver even a double-digit correction in the coming year. Wholesale used prices have never seen a greater than 5% correction without an extreme oversupply situation. And we don’t see that happening. Just the opposite: With declines in sales to fleets and leases since 2019, the sources of wholesale vehicles are constrained at least through 2023. And there remains pent-up demand as a result of last year’s lack of supply. Furthermore, new-vehicle supply is likely to remain constrained at least through 2022.

On our call last week, there were questions about the potential negative equity consumers could be facing, having paid “too much” for a used vehicle in recent months. Again, we think those concerns are overstated.

Vehicles have been bought and sold at market prices, and comparisons to pre-pandemic values are misleading. We’ve had a step-change in values, and values have never gone back to prior levels, even with recessions. As long as there is inflation in new vehicle prices and in the economy, values will rise. Therefore, it is extremely unlikely that we will ever see 2019 values again. Auto credit does not face a growing negative equity problem.

Vehicles are depreciating assets. Auto loans are underwritten with that in mind and are designed to have negative equity throughout their terms. With higher down payments combined with appreciation already experienced in 2021, current auto loan-to-value ratios are lower, not higher. If we merely see above-average depreciation in 2022, risks will not grow for lenders and investors. Buyers will not be faced with negative equity challenges that are any different from what we experienced prior to the pandemic.

It is true that used-car margins will contract, but they are likely to remain above what they were pre-pandemic through at least the first half of 2022. Dealers need to be careful about acquiring and managing used-vehicle inventory as the peak in used-vehicle values approaches and a more normal pattern of depreciation returns. Barring economic catastrophe, however, we won’t see a return to pre-pandemic levels in used-vehicle values. We are forecasting wholesale used-vehicle values to lose about 3% year over year by the end of 2022. No one, dealers nor consumers, needs to worry about a crash in used-vehicle values.



 

Weather Man

Persistance Is A Bitch
Established Member
Premium Member
Joined
May 18, 2012
Messages
18,964
Location
MN
Local Ford dealer is the only one with any inventory on the lot. All the other brands are decimated.
 

tones_RS3

I like members members.
Established Member
Premium Member
Joined
Jan 29, 2016
Messages
18,817
Location
MA
Wow. Crazy, crazy times.

It's a wonder how some of these car dealerships stay afloat. If they don't sell any cars/trucks or get many repairs in, how do they stay afloat?
 

CobraBob

Authorized Vendor
Established Member
Premium Member
Single Barrel Sirs
Joined
Nov 17, 2002
Messages
98,777
Location
Cheshire, CT

General Motors plans to launch online car marketplace this spring

GM +0.32%Jan. 11, 2022 2:17 PM ET2 Comments
  • General Motors Company (GM +0.2%) is launching an online used vehicle market this spring called CarBravo. While the platform is expected to largely facilitate sales to dealers, it places GM in closer competition to online sellers like Carvana (CVNA +2.9%), CarMax (KMX -0.7%) and Vroom (VRM +5.7%).
  • The new site is expected to debut this spring with Chevrolet, Buick and GMC dealers offering GM-branded vehicles as well as used vehicles from other automakers.
  • General Motors already sells online to consumers directly through its website where a GM Hummer EV can be reserved in a few clicks.
  • The biggest GM news this year is the boost in orders for BrightDrop electric delivery vans.
Very interesting news. I still see my vision of the future of new car ordering unchanged. The times they are (definitely) changing.
 

CobraBob

Authorized Vendor
Established Member
Premium Member
Single Barrel Sirs
Joined
Nov 17, 2002
Messages
98,777
Location
Cheshire, CT
Service is where ALL the money is.

Sent from my Potato
THIS! Dealerships have little qualms about a customer buying a vehicle from another dealership. They do LOVE it when a customer who bought a vehicle elsewhere makes their dealership their service center. I've done it multiple times over the years. There's a reason why that is so. Like you said, it's where the big money is. Plus, great service can mean that a future sale will be made through that dealership. The customer spends much more time over a multi-year period at the dealership service center than in the showroom.
 

Users who are viewing this thread



Top