Automotive News - March 24, 2008 - (Page 46)

46 • MARCH 24, 2008 remarketing Big pickups and SUVs lead plunge in used-vehicle prices Arlena Sawyers asawyers@crain.com Average wholesale used-vehicle prices, February Average price February 2008 Average price January 2008 Average price February 2007 % change vs. January 2008 % change vs. February 2007 Wholesale prices of big used SUVs and pickups plunged by double-digit percentages last month compared with February 2007, amid weak demand and rising gasoline prices. “Large SUVs and pickups remained the weakest segments of the market, both in recent months and over the past year,” said Tom Webb, chief economist at the Manheim vehicle auction company. In February, large SUVs sold at auction for an average price of $11,790, 14.7 percent lower than in the yearago month, reported ADESA Inc. Full-sized pickups sold for an average wholesale price of $10,669, down 10.5 percent from February 2007. Those slumps were largely responsible for a 2.5 percent year-over-year decline in overall used-vehicle prices. The average wholesale price of vehicles sold at auction last month was $9,744, ADESA said. Prices in every vehicle segment were lower than in February 2007. Tom Kontos, ADESA’s executive vice president of customer strategies and analytics, said higher-than-usual inventories of repossessed and offlease vehicles also helped depress used-vehicle prices. At the same time, retail sales of used vehicles by franchised dealerships rose 7.7 percent last month compared with the year-ago month, said CNW Marketing Research. Franchised dealerships sold 582,155 used cars and trucks in February, CNW said. Kontos said franchised dealerships are focusing on used-vehicle sales to help offset declines in sales of new cars and trucks. Franchised dealerships “have preferred access to attractive used-car inventory” — trade-ins, off-lease vehicles and factory-owned cars and trucks retired from rental service, Kontos told Automotive News. “Independent dealers don’t have that access.” Last month, Manheim’s Used Vehicle Value Index fell for the fifth straight month. The index stood at 108.1 in February, down from 109.1 in January and 113.3 in February 2007. Cars Small and mid-range Sporty Traditional Upscale Total car $7,790 11,879 9,832 12,337 $8,705 $7,806 11,595 10,716 12,576 $8,703 $7,274 10,729 7,832 7,792 10,531 11,879 14,119 $10,515 $9,705 $7,969 12,480 10,497 13,276 $8,902 $7,466 11,927 8,742 8,103 10,988 13,823 14,659 $11,180 $9,993 –0.2 2.4 –8.2 –1.9 – 1.5 –0.6 2.2 0.3 –1.2 –0.7 –0.6 –0.3 0.4 –2.2 –4.8 –6.3 –7.1 –2.2 –1.1 –10.5 –8.4 –3.6 –5.3 –14.7 –4.3 –6.2 –2.5 Light trucks Small pickups $7,381 Full-sized pickups 10,669 Minivans 8,005 Full-sized vans 7,815 Lower mid-range SUVs 10,408 Large SUVs 11,790 Other SUVs* 14,035 Total light truck $10,483 TOTAL WHOLESALE $9,744 Note: Based on approximately a half million AuctionNet wholesale vehicle transactions a month *Includes standard and premium crossovers and small, upper mid-range and premium SUVs Source: ADESA Analytical Services based on AuctionNet data and Automotive News market classifications The index monitors changes in used-vehicle prices, adjusted for model mix, mileage and time of year. c eBay’s new Web site has new look, more features Arlena Sawyers asawyers@crain.com The online auction eBay has redesigned its automotive Web site in an effort to drive more sales to franchised dealerships. “Dealers do business with us because we bring them qualified buyers,” said Rob Chesney, president of eBay Motors. “That’s never been more critical than it is now. The economy is tough.” About 15,000 franchised and independent dealers list new and used vehicles for sale on eBay Motors. The site attracts 11 million unique visitors each month. Last week the site offered nearly 43,000 vehicles for sale from all sources. About half of the listings were from franchised dealerships and used-car lots. Chesney told Automotive News that the relaunched eBay Motors site is easier to use. It includes vehicle histories and information about financing and equipment options, he said. Later this year, 3,900 General Motors dealerships that sell GM Certified used vehicles will begin to list their inventories of used cars and trucks on eBay Motors. Those dealerships will get a separate display on the site. GM Certified expects the dealerships’ posted inventories to total about 64,000 vehicles. Mark Mathews, GM’s director of used-vehicle activities, said eBay Motors is the most visited automotive Web site, according to Nielsen/NetRatings. “The eBay Motors agreement means that GM Certified dealers will have millions more eyeballs looking at their inventory,” Mathews said in a statement. “More traffic drives sales.” Once a user of the redesigned eBay Motors site se- understand how consumer behavior is evolving as it relates to shopping for vehicles online. “ We try to ” ROB CHESNEY eBay Motors lects a make and model, the site lists vehicles matching the search. It allows the user to refine the search on the Web page using such criteria as market segment, price, mileage, fuel type, transmission, color and ZIP code. A new “buyer checklist” provides tips on shopping, negotiating and financing. The site retains eBay Motors’ feedback system, which lets buyers rate dealerships. As it planned the redesign, Chesney said, eBay Motors sent researchers to consumers’ homes to observe how they shopped online. “We try to understand how consumer behavior is evolving as it relates to shopping for vehicles online,” Chesney said. “At the end of the day, all dealers want is for us to bring them buyers.”c Last week the eBay Motors Web site offered nearly 43,000 vehicles for sale. Certified sales up 7.5% in Feb.; Audi leads the way Arlena Sawyers asawyers@crain.com Turn to page 48 for the Sales of factory-certified used vehicles rose overall last month, although some brands — notably Audi — did much better than others. In February, the industry sold 138,907 certified used cars and trucks, up 7.5 percent from February 2007. In the first two months of 2008, the industry sold 266,954 certified vehicles, 4.0 percent more than in the year-ago period. Audi increased certified sales last month 55.9 percent, to 3,021 units, largely on the strength of special incentives. Through March, Audi Financial Services is offering customers with good credit finance rates of 0.9 to 2.9 percent on purchases of 2005 and 2006 certified Audis. General Motors’ certified sales fell 1.3 percent last month from February 2007, to 42,305 units. Its sales for January and February 2008 declined 7.1 percent, to 79,974 units, from the year-ago period. Saturn was GM’s biggest loser. Its year-over-year certified sales in February were down 44.1 percent, to 706 units. In the first two months of the year, sales of certified Saturns plunged 51.6 percent, to 1,252. Sales of the GM Certified brand dipped 0.3 percent in February, to 37,716 vehicles. The brand sold 71,055 cars and trucks in the first two months of 2008, a 5.8 percent drop from the year-ago period. The GM Certified brand includes Buick, Chevrolet, GMC, Pontiac and Oldsmobile used vehicles. c Used Vehicle Auctions

Table of Contents Feed for the Digital Edition of Automotive News - March 24, 2008

Ford lists 6 to succeed Mulally GM pushes luxury superstores Industry straps in for rough ride Bob Irvin is a worthy addition to Hall of Fame Debate at Scion: How to grow Ford moves executives in Asia to new jobs CEO of lanelogic: We're still here Kia's N.Y. duo Chrysler's exec trio: Reports of friction mostly fiction Where others see gloom, Honda chief sees boom in U.S. Fukui: Nickel battery is best bet for hybrid Beijing conference explores key issues in China market Planworks keeps its role as buyer for GM ads Lincoln: MKS will make up for brand's slow start in '08 Deal's no big deal: Styling top reason to buy GM Penske's Smart start: He'd like 15,000 more Dodge's pitch for Challenger: A halo that you can afford Chrysler plans 'We listen' ads You go, Bob With zest, activist Ditlow remains on lemon patrol Autos did the job after 9/11; don't bet on that now Chinese cars? Dealer beware Solar power is the only answer Where will we get power for the Volt? Want higher CAFE? First, do this In N. California, hybrids are hot Detroit 3 can learn from the Marlboro Man The Prius is a phenomenon Wait 3 years, then judge Ford How many Jeeps will India buy? Lithia looks into improper sales reports at dealerships AutoNation's lead shrinks as largest U.S. dealer group Honda ad agency creates unit to build Acura brand Study: Consistent theme in auto ads builds viewer recall Big-truck sales continue slide in Feb. -- off 27.1% MazdaSpeed revs up racing accessory sales Calif. company eyes electric charging stations for Volt, Vue Indictment: Bribe scheme cost GM $83.3 million The greening of Toyota dealerships 6 more finalists in race for PACE recognition Tenneco expands Japanese work, seeks more Bosch buys diagnostic equipment firm in China JV will design vehicle platforms Citation moves headquarters NxtGen tests emissions system VW stake may help Porsche on fuel economy rules Chrysler's Project Genesis wins over Ore. dealer Germany, new EU members send up European sales Saturn will choose store system soon VW thinks modular for flexibility at auto plants Automakers eager as axles turn high-tech Talking drivetrains with American Axle Dollar halts U.S. retail sales of Audi Q7 hybrid Hyundai: Genesis Coupe offers more go for dough Maxima's target: Luxury Euro makes Pontiac adds 3 sporty variants Outsider Elmer Johnson shook up GM Importer Yanase was Hall of Fame member Obituaries Redesigned TSX has many Acura firsts Dealers Certified sales up 7.5% in Feb.; Audi leads the way eBay's new Web site has new look, more features Big pickups and SUVs lead plunge in used-vehicle prices Ex-Reynolds CEO O'Neill joins J.D. Power Auto Hall of Fame will induct 8 Liberatore looks beyond Daimler Molina gets the top job at GMAC F&I pioneer Pat Ryan to retire from Aon Study: Hydrogen research worth the cost Gulf States trial halted As yuan rises, so do prices of Chinese parts Personnel exec Laymon: Ford still seeking outside talent GE gives supplier credit Dana CEO wants Asian growth Tesla launches production Todt steps down as Ferrari CEO Union pursues Toyota effort Chrysler offers spiffs for military Land Rover ads focus on heritage Mark Rechtin Fresh heir: To turn green, must BMW create brand? GM ponders mini-muscle Camaro New Ford ads coming in April With a spiffier image, Lincoln would rock abroad Rival says Nardelli's OK Ford hails its cab, but mpg is an issue

Automotive News - March 24, 2008

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