2007 UCMR
Despite a modest decline in retail used vehicle sales volume in 2006, activity in the wholesale market was at its strongest level in years, Manheim chief economist Tom Webb said as he unveiled Manheim’s 2007 Used Car Market Report.
After two years of decline, the number of vehicles wholesaled at U.S. auto auctions increased 1.8 percent to 9.57 million in 2006. Also increasing were average wholesale prices (up 1.6 percent) and dealer attendance at auction, which reached record levels.
The 12th annual edition of the UCMR was the focus of Manheim’s news conference at the National Automobile Dealers Association convention in Las Vegas.
Among the key statistics cited in the 110-page UCMR:
- Used vehicles continue to be a critical source of profit for franchised dealers. In 2006, the net profit per used vehicle was $230, while new vehicles actually recorded a net profit of minus-$14 per vehicle.
- New lease originations increased for the third consecutive year, to 2.8 million. Meanwhile, off-lease volumes bottomed out and are now set to begin rising modestly.
- Domestic manufacturers reduced program vehicle sales and raised the prices of these vehicles to car rental companies; these companies in turn have transitioned the composition of their fleets to a higher percentage of risk vehicles.
- Wholesale prices for commercial fleet vehicles and light trucks sold at auction rose by more than 5 percent.
- The number of vehicles repossessed rose 5 percent after declining in both 2004 and 2005.
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