Market Trends

Resale Value

1  -  11  of  11

Resale Values Forecast to Decline 10-15% by 2014 as Used-Vehicle Supply Increases

September 13, 2011

Today’s high resale values are an anomaly caused by the shortage of used vehicles in the wholesale market due to the extremely low sales of new vehicles during the 2008-2011 timeframe. Nowadays, everyone is a hero when it comes to getting top dollar for their out-of-service fleet vehicles. However, these artificially high prices will ultimately decline as used-vehicle supply increases.

Tags: Remarketing, Used Vehicles, residuals, Antich, Resale Value

Author: Mike Antich | Posted @ Tuesday, September 13, 2011 12:00 AM | » Comments(1)

Fleets Reassess Amortization Rates

March 9, 2010

In the commercial fleet industry, the most common amortization rate used for establishing a depreciation reserve is 50 months. Recently, some major fleets extended amortization rates on new-vehicle orders.

Tags: Amortization, Resale Value, PHH

Author: Mike Antich | Posted @ Tuesday, March 9, 2010 9:40 AM | » Comments(1)

The Hidden Cost of Personal Use

September 22, 2009

Many companies are wondering whether they are charging enough for personal use. At some companies, this discussion is long overdue. When re-evaluating personal use charges, a common mistake is to focus solely on the cost of fuel. However, doing so ignores the other “hidden” costs of personal use, which have also risen.

Tags: Personal Use, Resale Value, Company Vehicle

Author: Mike Antich | Posted @ Tuesday, September 22, 2009 11:12 AM | » Comments(2)

Top 6 Fleet Trends in the Medium-Duty Truck Market

July 14, 2009

Six key trends will determine Class 3-7 medium-duty truck lifecycle costs in the 2010 calendar-year. They are diesel prices, acquisition costs, resale, maintenance costs, replacement tire expense, and environmental regulatory requirements. Here is a forecast of what to expect.

Tags: Remarketing, Diesel, Resale Value, Replacement Tires, Regulations, Medium-Duty Trucks, Mergers & Acquisitions

Author: Mike Antich | Posted @ Tuesday, July 14, 2009 8:43 AM | » Comments(2)

Sluggish Economy Continues to Dampen Resale Values for Medium-Duty Trucks

June 9, 2009

Resale values have significantly declined across the board on all medium-duty trucks, with five-year old medium-duty trucks decreasing, on average, between 18-23 percent in the past 12 months. Trucks older than 10 years have been more difficult to sell due to higher fuel and maintenance costs. The ongoing sluggish business environment is the key reason for the soft resale market. Here's a forecast of what's to come.

Tags: Resale Value, Medium-Duty Trucks

Author: Mike Antich | Posted @ Tuesday, June 9, 2009 11:05 AM | » Comments(0)

Resale Values Up, But Market Remains Fragile

March 20, 2009

Wholesale used-vehicle prices during fourth quarter 2008 were the worst on record. Since then, wholesale prices rose significantly in January through March. The improvement in pricing in 1Q 2009 reflects better-than-expected retail sales of used vehicles. Resale values for mid-size sedans are substantially higher than in 2008, as are prices for light-duty trucks and SUVs. However, consumer confidence and credit availability remain two wildcards to the market's ongoing vitality.

Tags: Resale Value, Used Vehicles, Wholesale Market

Author: Mike Antich | Posted @ Friday, March 20, 2009 4:13 PM | » Comments(-4)

Before You Call the Police, Think of the Impact on Resale Value

March 2, 2009

Massive layoffs are occurring throughout the economy, and many companies find that terminated employees are not returning their assigned company vehicles. Sometimes, the company-provided vehicle is held "hostage" until the employer meets a grievance by the terminated employee. Unfortunately, many HR and legal departments take the "easy way" and are too quick to involve the police to expedite resolution.

Tags: Resale Value, Layoffs, Company Vehicle

Author: Mike Antich | Posted @ Monday, March 2, 2009 3:43 PM | » Comments(0)

How Long Will the Slump in Used-Vehicle Values Last?

January 13, 2009

We are currently in the midst of the worst used-vehicle market in the past 25 years. Year-over-year prices declined every month in 2008; however, wholesale prices did improve the first 10 days of January. Despite this, many fleets now find that the depreciation rates established 24-36 months ago are insufficient for today's resale market. In many cases, resale values of fleet vehicles are significantly below the remaining book value. Here's a forecast for what lies ahead in the wholesale market.

Tags: Resale Value, Used Vehicles, Wholesale Market, Vehicle Sales, Used Vehicle Sales

Author: Mike Antich | Posted @ Tuesday, January 13, 2009 9:41 AM | » Comments(1)

Predictions for Fleet in 2009

January 6, 2009

When looking ahead to the next 12 months, I foresee reduced operating costs for fleets offset by increased depreciation expense caused by anemic resale values and decreased incentive monies. Here’s why I believe this will be the case, along with other predictions for 2009.

Tags: Operating Costs, Depreciation, Resale Value, Forecast

Author: Mike Antich | Posted @ Tuesday, January 6, 2009 10:45 AM | » Comments(4)

A Perfect Storm Pummels Truck Resale Values

July 15, 2008

A combination of market forces have converged to create a “perfect storm” to drive down resale values for pickup trucks by 15-25 percent. These convergent forces are higher fuel prices, tighter consumer credit, and a stagnant construction market. As a result, the pool of buyers (hence market demand) for used trucks has contracted, putting downward pressure on resale prices.

Tags: Remarketing, Resale Value, Four-Cylinder

Author: Mike Antich | Posted @ Tuesday, July 15, 2008 8:56 AM | » Comments(0)

Think Like a Used-Car Sales Manager

April 1, 2008

When resale prices soften, there is a pendulum-like resurgence in marketing used vehicles to employees. On the other hand, when the resale market is strong, fleets are complacent about employee sales (waiting for buyers come to them) and do not aggressively market the program to new buyers. The national average of vehicles sold to employees is 23 percent. However, by aggressively marketing employee sales, many fleets could sell as much as 50 percent of their vehicles in-house.

Tags: Resale Value, Wholesale Market

Author: Mike Antich | Posted @ Tuesday, April 1, 2008 10:41 AM | » Comments(2)

« Previous1Next »

Newsletter

We offer e-newsletters that deliver targeted news and information for the entire fleet industry.



GotQuestions?

LUBRICANTS

The expert, Mark Betner from Citgo will answer your questions
Ask a question

Sponsored by


WHEEL ENDS SOLUTIONS

Wheel end expert Jeff Geist from STEMCO will answer your questions
Ask a question

Sponsored by

Magazine