Trends Shaping New and Used Vehicle Segments Explored in Manheim’s 2017 Used Car Market Report

2016 brought good news for almost every segment of the auto industry. Highlights included accelerating used vehicle sales, a record high 17.5 million new vehicle sales, and a growing number of services and support products that are dramatically improving the efficiency of the automotive marketplace – from retail to remarketing.

These trends – and the outlook for 2017 – are explored in depth in the 22^nd edition of the Manheim Used Car Market Report, presented by Cox Automotive. Each year, the highly respected compilation provides a compelling snapshot of data and trends shaping the used car business.

“2016 was most likely a bullish year for you regardless of what sector of the automotive ecosystem you’re part of,” said Tom Webb, chief economist for Cox Automotive. “Looking forward, although there is looming uncertainty about the economic climate in 2017, the prospects are still good that the seven-year recovery in the automotive industry will continue.”

A major focus of this year’s report is the speed with which new technologies and services are transforming the automotive marketplace, a fact that Janet Barnard, Cox Automotive’s president of Inventory Solutions, addressed in her introductory letter.

“We’re committed to ensuring that doing business with us becomes faster, easier and more rewarding,” she said. “We are creating a seamless experience to produce efficiencies and time savings across our portfolio of brands so our clients can focus on their customers and running their businesses.”

As usual, the report provides a comprehensive look at multiple segments of the automotive industry, along with a series of brief case studies and insights from key industry players. Among the highlights:

Remarketing Industry

NAAA-member auction sales approached 10 million in 2016
Wholesale prices overall have been stable over the last four years despite rising volumes

Dealers

New vehicle sales were a record 17.5 million units
Dealers increased used vehicle sales for a seventh straight year

Rental

Total rental car industry revenue reached a record $28.4 billion
Number of vehicles purchased by rental companies increased 4 percent to 1.82 million in 2016

Leasing

New retail consumer lease originations grew 7 percent in 2016 to 4.4 million units
Off-lease volumes will reach a record 3.6 million in 2017 and then surpass 4 million in 2018

Repossessions

The dollar amount of auto loans outstanding reached a record level of $1.1 trillion
An estimated 1.7 million vehicles were repossessed in 2016

Fleet

New vehicle purchases by commercial and government fleets grew 6 percent in 2016
Fleet management companies continued to be innovative users of data analytics and remarketing best practices to protect residual values

International

Global new vehicle sales for 2016 are expected to grow to 90 million units
China ranked first in global new vehicle sales with 25 million units sold, a 4.6 percent increase

The report is available for download at http://ift.tt/1LcZjea.

The post Trends Shaping New and Used Vehicle Segments Explored in Manheim’s 2017 Used Car Market Report appeared first on Fleet Management Weekly.

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