Press Releases

ATLANTA – Although higher gas prices, tighter credit, falling house prices, and strategic shifts by manufacturers resulted in lower new and used vehicle sales in 2007, used vehicle retailing remained profitable for both independent and franchised dealers. 

Examining trends within the remarketing industry and the economy as a whole, the 2008 Used Car Market Report (UCMR) demonstrates the importance of the used car market and shares the stories behind the numbers to explain 2007 trends and 2008 forecasts. The 106-page UCMR, researched and written by the team of analysts at Manheim Consulting, documents trends with the use of both proprietary and industry data from 44 research sources. 

In this 13^th annual edition of the UCMR, Manheim Consulting highlights activity among dealers and institutional sellers (including fleet, leasing, rental, and finance companies) and takes expanded looks at trends in reconditioning and international remarketing. The book also details developments in “intelligent remarketing,” discussing the interplay between physical and online auctions and the ways in which technology and data analysis help buyers and sellers make smarter decisions.

“The Used Car Market Report has established itself as the go-to source for valuable information and trends that shaped the wholesale and retail used vehicle market over the past 12 months,” said Lynn Morgan, vice president/Manheim Consulting. “Our goal has always been to provide a one-of-a-kind resource that provides the data, analysis and economic insights needed to understand this complex industry.”

Some of the key facts from the 2008 Used Car Market Report include:

• AUCTION ACTIVITY: North American auctions remarketed 9.6 million used vehicles in 2007, with dealer-consigned vehicles rising in actual numbers and as a percent of auction volume. Wholesale pricing rose for most of the year before falling in the fourth quarter. 
• DEALERS: Overall, retail used vehicle sales volume fell for the second straight year, though average price ($8,186) reached its highest level since 2004. For franchised dealers, the gap between their net profit per new vehicle

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sold and per used vehicle sold was the largest ever recorded by NADA, at $257 per vehicle in favor of used vehicles.

• LEASING: New lease originations increased for the fourth consecutive year, to 2.8 million units. Off-lease volumes rose by 145,000 units, and an even larger increase is expected in 2008. Wholesale pricing for off-lease units at auction remained strong.
• RENTAL: New vehicle sales into rental declined by 8 percent to 1.9 million units. The average price of program cars at auction jumped substantially due to lower volume and a richer mix of models. The share of rental purchases accounted for by risk units exceeded 50 percent for the first time in nearly 20 years.
• FLEET: New vehicle sales into nonrental fleets increased for the fourth straight year, with foreign brands and fuel-efficient models increasing in popularity. Online remarketing to drivers/employees continued to grow. 
• FINANCE COMPANIES: Average auto loan maturities continue to lengthen, and vehicle repossessions rose by 10 percent in 2007, reaching their highest level (1.51 million) since 2003. Still, auto financing at attractive rates remained available despite turmoil in the broader credit market. 

The UCMR features several technology and service case studies, offering snapshot views of industry advancements and research findings. The book also outlines some of Manheim’s investments in environmentally friendly initiatives, including state­of-the-art technology to reduce electric power, water consumption, and emissions. The book itself was printed on partially recycled paper, saving 14 trees, 5,994 gallons of water, and 1,306 pounds of greenhouse gases.

About Manheim

Manheim is the world’s leading provider of vehicle remarketing services.  Through its wholesale operating locations and array of technology products, Manheim impacts every stage of a used vehicle’s life cycle, helping commercial sellers and automobile dealers realize the full value of their vehicles.  

The company’s operating location services include reconditioning, certification, inspections, dealer financing, transport, title management and marshaling, among others.  Manheim is also the leader in vehicle remarketing technology, using its online tools to connect buyers and sellers around the globe to the world’s largest, most comprehensive wholesale marketplace.  In 2007, Manheim handled nearly 10 million used vehicles, facilitating transactions representing more than $59 billion in value.  

Manheim’s subsidiary companies provide value-added remarketing products and services, including paintless dent removal (Dent Wizard), Auto Body Repair, and salvage vehicle remarketing (Total Resource Auctions).