Tag Archive | "Manheim"

Wholesale Used-Vehicle Prices Increase in December, Manheim Reports

ATLANTA — Wholesale used-vehicle prices on a mix-, mileage-, and seasonally adjusted basis increased by 0.2% in December, according to Manheim. Compared to December 2015, the Manheim Used Vehicle Value Index declined 0.6% to 124.9.

For 2016 as a whole, the Manheim Index came in at 125.1, up 0.3% over the year prior and the third year-over-year increase in a row. According to Manheim, the most notable aspect of wholesale pricing in recent years has been the stability.

“After a sharp rise in wholesale pricing in 2009 and 2010 coming out of the recession, the absolute year-over-year change in pricing was less than two percentage points in each of the last six years. Statistically speaking, this period has shown the least volatility in wholesale vehicle pricing since the Manheim Index’s inception in 1995,” the Manheim report read.

While overall wholesale prices have been stable in recent years, the differences between market classes have become more pronounced, Manheim stated. The two extreme examples, the company added, are pickups and compact cars. On one end, pickup prices have risen 28% over the last four years, while on the other, compact car values have fallen 14% over the same period.

The reason for this price disparity: a tremendous consumer preference shift toward crossovers and away from small sedans, Manheim stated. For the new-vehicle market, the market’s flexible production capacity allowed the new-vehicle market to adapt to this shift and produce more of what consumers wanted.

But, on the used-vehicle side, “… the ‘production of used vehicles’ can’t be adjusted. As a result, the supply of used compact cars has been higher than what consumers demanded in recent years, and as a consequence, residuals suffered,” the report read.

The 2016 calendar year was also a good year for the used-vehicle retail market, according to Manheim. While new retail vehicle sales were essentially flat in 2016 over the prior year period, used unit retail sales by dealers grew by more than 4%. For 2017, the growing wholesale supplies and lower auction prices are expected to continue pushing used retail higher, according to Manheim.

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Manheim Promotes Four General Managers From Within

ATLANTA — Manheim has promoted four individuals to the rank of general manager at four auction locations across the country, the company announced this week. Trever Enge, John Duplanty, Gus Jones and Maxine Vega will lead Manheim Georgia, Manheim Tucson, Manheim Arizona and Manheim New Mexico, respectively.

“Backed by their experience and passion for the business, these general managers will help Manheim deliver outstanding client service and continuously improve the auction experience,” said Barry Roop, vice president local and mobile Manheim’s Western region. “They are eager to partner with dealers, make it easy for them to work with Manheim and tap Cox Automotive’ s full line of products and services to support client growth.”

Enge has led business and product strategy for Cox Automotive and Manheim since 2012. His recent efforts have supported both organizations’ client success and, specifically, Cox Automotive’s largest commercial clients, the company added.

Before his time with Cox Automotive and Manheim, Enge worked in business development with Ally Financial’s SmartAuction, product development and strategy for Chrysler Group, and served as a product engineer at Borg Warner Automotive.

Duplanty has been with the Manheim organization for 11 years. During that time, he has held various roles. He began his career with Manheim as an intern while attending Arizona State University and worked his way up to general manager of Manheim Arizona, a role he held for two years up until this recent promotion to Manheim Tucson.

Jones began his career with Manheim in 2006 as a dealer sales manager. For the past nine years, the company stated, he has built his leadership skills and relationships as assistant general manager at Manheim Phoenix, volunteering with Habitat for Humanity, Ronald McDonald House Charities and the Hispanic Leadership Forum.

During Vega’s 14-year tenure with Manheim, she served as financial controller for several Manheim locations in multiple states. Most recently, she served as operations manager for Manheim New Mexico.

“Manheim is delighted by this crop of talent and values what they can offer our clients and the industry,” said Mark Ford, regional vice president southeast, Manheim. “We are committed to providing these team members the tools and information they need to succeed in 2017 and beyond.”

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Manheim Vehicle Solutions Gets New Senior VP

ATLANTA — Cox Automotive has appointed Joe George as senior vice president of Manheim Vehicle Solutions. He will be responsible for strategy to execution, driving the wholesale and retail solutions long-term plan related to reconditioning, imaging purchase protection and inspections.

Effective Oct. 17, George will report to Janet Barnard, president of Cox Automotive Inventory Solutions. He succeeds Shane O’Dell, who was recently named president of Cox Automotive Financial Services.

“Joe is a proven leader with in-depth knowledge of the changing wholesale and retail marketplaces,” said Janet Barnard, president of Cox Automotive Inventory Solutions. “With Joe’s support, we will move closer to our strategic vision of becoming a holistic inventory services provider, expanding our reach beyond the lanes and providing value-added, end-to-end services for our clients.”

George previously served as senior vice president and chief strategy officer for Cox Automotive. Earlier in his career, he helped launch Autotrader.com and held several leadership positions with Autotrader’s parent company.

George has worked with Cox Automotive and several of its brands for more than 27 years. He first joined the company as an auction employee at operating locations and rose through the ranks to eventually become marketing manager, general sales manager, and assistant general manager.

He later joined Manheim’s executive team and became senior vice president of product development and vice president of Manheim Digital, according to the company.

“I’m excited to help shape Cox Automotive’s remarketing strategy, especially at a time when the company is focused on reimagining the used-car marketplace and improving the client experience,” said George. “My goal is to help broaden our services and deliver added value to our clients and our company.”

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Wholesale Prices Rise Again in May, Manheim Reports

ATLANTA — Wholesale used-vehicle prices increased again in May, suggesting dealers have continued to achieve efficiency gains that allow them to bid-up auction prices even as gross margins narrow.

The May increase, which followed an April increase, resulted in a year-over-year gain, according to Manheim’s Used Vehicle Value Index.

Total used retail unit volumes rose 6% in the first four months of 2016. Preliminary numbers suggest sales rose again in May. Likewise, CPO sales jumped 6% in the first four months of the year, increasing again in May.

“Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased in May, resulting in a Manheim Index reading of 124.5,” Manheim stated in its report, in part. “The large monthly rise, combined with weakness this time last year, resulted in a year-over-year gain — the first since December of last year.

New vehicle sales: New car and light-duty trucks sold at a seasonally adjusted annual selling rate (SAAR) of 17.4 million in May. The number was an improvement over April’s 17.3 million pace, but below last May’s 17.6 million.

For the first five months of 2016, the SAAR averaged a modest 17.2 million, despite heavier fleet sales. In the first five months, new-vehicle purchases increased 8% for rental car companies, 11% for commercial fleets, and 38% for government agencies.

“At the start of the year, there were indications that manufacturers were going to accept the leveling-off of sales at last year’s record pace, but announced incentives for June picked it up,” Manheim stated in its report. “Overall, new-vehicle inventory levels are reasonable, but the mix is imbalanced. On net, we expected the new-vehicle market will have a slightly negative impact on used-vehicle residuals in the coming months.”

Unadjusted prices: A straight average of auction prices remained well above year-ago levels in May due to the share shift toward commercial consignment and lower average mileage for both dealer and commercial consignment.

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Used-Vehicle Pricing Continues to Ease

ATLANTA – Wholesale used-vehicle prices declined in March for the third consecutive month, illustrating the long-anticipated dip in pricing. This brought the Manheim Used Vehicle Value Index — a measure of wholesale prices adjusted for mix, mileage and season — to a reading of 122.5 in March, a decrease of 1.6% from a year ago.

“While wholesale prices have fallen each month in 2016, experts have long predicted pricing would ease this year and it’s no cause for alarm,” said Tom Webb, chief economist for Cox Automotive. “Evolving industry practices may be muting what used to be a strong spring pricing bounce, and it is important to keep in mind that wholesale prices increased somewhat this year before the history-based seasonal adjustment, which may be less relevant in today’s market.”

Preliminary numbers suggest that dealers had another strong used-vehicle sales month in March. According to the NADA, both franchised and independent dealers experienced double-digit gains in used-vehicle sales for the first two months of 2016. Additionally, with an increase of 215,000 jobs in March, total U.S. employment has risen by 13.9 million jobs over the past six years.

The stability in the labor market – measured by initial jobless claims or job openings per job seeker – provides the foundation for low risk-adjusted delinquency rates and, thus, good credit availability. As a testament to this, overall CPO sales were up 5.1% in the first quarter, with March coming in especially strong with a 9.6% increase.

For rental risk units, auction sales rose in March as higher new unit sales into rental allowed the retiring of older units in the fleet. The average auction price — adjusted for broad shifts in mix and mileage — rose 1% from February but was down 7.3% from a year ago.

Vehicles in the $7,000 to $10,000 price range continued to face the most competitive pricing pressure in the first quarter, while vehicles valued above $15,000 proved better. The percentage growth in auction volume was slanted towards units above $25,000, the firm noted.

Here’s a look of first quarter wholesale pricing by vehicle segment:

  • Compact Car prices were down 9.1% in March over the same period last year and continued to underperform the overall market due to extremely competitive pricing of new vehicles and more consumers shifting to small crossovers.
  • Midsize Cars, typically one of the weaker segments, showed a somewhat modest decrease of 1.7% compared with other car classes over the same period last year.
  • Pickups and Vans showed mixed results, as pickups represented the only uptick of all major market classes with a 7.4% increase while vans were down 2.4%. The increase in pickup pricing can be partially attributed to lower gas prices.
  • Luxury Car wholesale pricing performed poorly this quarter after stabilizing at the end of 2015 and was down 3.4% compared with last March.
  • SUVs and CUVs decreased 2% compared with last March despite the continued increase of vehicle miles of travel thanks to lower gas prices and favorable lending.

“While fundamentals suggest the current pricing trend will last longer than the earlier downturns in pricing in this cycle, the year as a whole is setting up well and we may be able to avoid extreme volatility in wholesale pricing,” said Webb.

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COX Automotive Execs Named Leading Women

ATLANTA, Ga. — Three top executives at Cox Automotive were named to Automotive News’ 100 Leading Women in the North American Auto Industry during the publication’s annual awards ceremony.

Jane Barnard, president of Manheim North America, Lori Wittman, vice president and general manager of VinSolutions and Sharon Kitzman, vice president and general manager of Dealer Management Systems, all made the list, which honors influential women who make major decisions.

The selection committee for the award considered the size and importance of the candidates business, the health and direction of the business and the arc of each individual’s career, according to Automotive News.

Barnard directs Manheim’s overall operations, overseeing the strategic business functions including sales, inventory services and client experience. She also acts as a member of Cox Automotive’s leadership team.

Wittman directs all aspects of VinSolutions’ operations, including websites, client relationship software and digital marketing products. She is noted by Cox as specializing in driving cross-functional teams to deliver business results and manage change while developing lasting relationships with business partners, clients and colleagues.

In her role, Kitzman manages the strategic direction of and product development for Dealertrack DMS. She has negotiated key OEM agreements for dealers and shaped successful product integration initiatives.

Cox Automotive provides digital marketing software, financial, wholesale and e-commerce solutions for consumers, dealers, and manufacturers. The Cox Automotive family of brands includes, Manheim, Autotrader, Kelley Blue Book, Dealertrack, vAuto, Xtime, NextGear Captial and several others.

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