Auctions

CBB used-car retention index hits all-time record

MARKHAM, Ontario - 

Not only did the Canadian Black Book Used Vehicle Retention Index beat year-ago figures by more than 3 percent in March, it tied an all-time record.

Canadian Black Book shared the index report earlier this week, noting that the 103.0 reading for March was on par with the best-ever tally in December.

It was a 3.2-percent hike from March 2017 and a 0.5-percent jump from February, the company said.

“It is important to note that the Canadian dollar started the month at just under 78 cents, but then it promptly fell to 76.5 cents,” Canadian Black Book said in a news release accompanying the index.

“The weaker dollar helped to keep Canadian vehicles affordable for export for at least a portion of yet another month,” it said.

Compact cars showed the most growth from March 2017 with a 7.8-percent increase, followed by midsize cars at 6.5 percent.

Meanwhile, compact crossover/SUV and full-size cars had the biggest month-over-month growth (each gaining 1.8 percent).

Conversely, CBB noted that minivans were down 4.7 percent year-over-year, with full-size pickups off 1.9 percent.

Month-over-month, full-size crossovers, luxury cars and full-size vans were each down 0.6 percent.



TradeRev hosting charity sale to benefit Humboldt Broncos hockey team

TORONTO - 

A wide array of KAR Auction Services companies and employees are finding ways to show support for individuals and families impacted by the April 6 crash in Saskatchewan involving the Humboldt Broncos junior hockey team.

On Wednesday, TradeRev is hosting an online charity auction in which a 2014 Harley-Davidson FXDF Fat Bob will be on the block, and 100 percent of sale proceeds will go to the Humboldt Broncos GoFundMe campaign.

A note to AuSM Canada from KAR indicated that TradeRev will cover the shipping costs.

“It’s as easy as signing into TradeRev and looking for the trade hosted by TradeRev Motors,” a company spokesperson said about the event that begins at 2 p.m. ET on Wednesday.

Also, for the past couple of weeks, ADESA Canada employees have worn their hockey jerseys in support of the Humboldt community and raised money to support the Humboldt Broncos GoFundMe campaign.

All of the efforts have arrived because of the April 6 tragedy in which a bus carrying the hockey team and coaches was involved in a crash near Armley, Saskatchewan, killing 16 people and injuring another 13.

To make a donation directly, .

Manheim Moncton launches with Cox Automotive Canada-TGNA partnership

MISSISSAUGA, Ontario  - 

Cox Automotive Canada said Wednesday it has partnered with The Great Northern Auction and is launching Manheim Moncton to provide more remarketing service to the Atlantic Canada region.

The weekly Manheim Moncton sales begin March 21 and will be facilitated by TGNA, which is located in Moncton, New Brunswick.

The sales will also be broadcasted live on Simulcast via Manheim.ca, where grading and vehicle history reports can also be accessed. Sales will be each Wednesday at 3:00 p.m. (AST).

The overall wholesale vehicle market will be discussed in great detail at next month’s , where Cox Automotive Canada is a sponsor. for that conference ends today.

More on TGNA partnership

TGNA was started in 2011 and is Eastern Canada’s largest public auto auction, according to a news release on the partnership.

“Both Cox Automotive Canada and TGNA are continually working to offer a solution that helps dealers and commercial clients have the most success with their wholesale units,” TGNA chief financial officer and chief operating officer Mary Liptay said in a news release. 

“Discussions about this partnership were initiated over a year ago, and we are very excited about it,” she said. “I feel this is a natural next move for us – part of a progression – and it’s exactly what we need to be doing to grow the company in this market.”

Mark Chatfield is the general manager at Manheim Halifax, and his team will help support the partnership.

“This is a great opportunity for Manheim and Cox Automotive Canada to grow our footprint in Atlantic Canada, but it’s especially exciting to be partnering with TGNA because they’re a company that embraces the same culture and family atmosphere that Cox is comprised of,” said Chatfield.

“I look forward to continued month-over-month growth in New Brunswick – and to strengthening the relationship between TGNA and Cox Automotive Canada,” he said.

Used-car retention values reach all-time high

MARKHAM, Ontario  - 

The retention value of 4-year-old vehicles has reached an all-time high for the second year in a row, according to the 2018 edition of the Canadian Black Book Retained Value Awards released this week.

Four-year-old vehicles are retaining 53 percent of their original MSRP, Canadian Black Book said, beating the record level (51 percent) from 2017.

Overall brand winners include Toyota (for both the car and truck/crossover/SUV categories) and Porsche, which was tops in luxury. 

Of note among the model winners is the Jeep Wrangler, whose 2014 edition retained 91 percent of MSRP, an all-time high by a wide margin. The Wrangler has won for eight straight years in a row. 

These factors push retention levels 

So what’s driving such high overall retention value of used cars?

“Good question. It’s a lot of things. It’s never just one factor,” CBB’s Brian Murphy said in a phone interview. “Generally speaking, the economy’s doing quite well so the demand for new cars and used cars is quite strong.”

Another driver is the volume of used vehicles being exported from Canada to the U.S., said Murphy, who is CBB’s vice president of research and editorial.

“There’s some additional profits to be made by buying a car that’s typically priced lower in Canada and then shipping it to the United States,” he said.

“Those two things are probably the main drivers, and then I think the third factor you can’t overlook is really that values have just been going up, up, up for the last eight years, so it’s really just sort of the trend, if you will,” Murphy said. “Back eight years ago was when things were in recovery mode from a rather rough patch of economic times.”

In fact, last month was the first January to show a month-over-month drop in CBB’s Used Vehicle Retention Index in nine years. And values were still up 3-percent year-over-year in January, which the company said was “not surprising given the overall strong values over the course (of) 2017.”

That speaks to Murphy’s insight on values consistently climbing.  

Some scaling down expected

How long will the incline last, though? It may be that the industry is reaching a “turning point,” despite what was a banner 2017, CBB president Brad Rome said in a news release.

“What a great year for retained values,” said Rome. “That said, the feeling is that we are getting close to the turning point where values are going to begin to retreat. Market conditions, most notably the increase in supply in the U.S. and Canada, is expected to put downward pressure on prices moving forward.”

Specifically, starting this year and through “the next three or four years” there could be some scaling back in used-car values, Murphy said.

The extent to which used-car values “retreat” will be influenced by the general movement in the Canadian economy as well as the “relationship” between the U.S. and Canadian dollars.

Also driving CBB’s expectations for some softening is the projected off-lease supply hike, similar to what has been seen in the U.S., Murphy said.

He expects off-lease numbers to climb significantly in coming years.

From 2013 through 2017, there was an average of roughly 225,000 lease returns each year in Canada, Murphy said. However, the average for the 2019-2021 time frame is expected to be 400,000 lease returns annually.

And with the “math” on off-lease volumes for the U.S. expected to be similar proportionately (albeit on much larger numbers),  U.S. prices could decrease, too, he said.

“And that kind of takes away the incentive to bring a car in from Canada if the U.S. prices are falling, as well,” Murphy said.

Supply recovery

In terms of supply, the Canadian used-car market is still in the early stages of the volume recovery, with that expected to ramp up late this year or early next year, Murphy said.

“It’s good news for consumers in terms of availability of product and for dealers’ availability of product,” he said.  

However, “if you’re remarketing a car, you can expect that the proceeds you get at auction in the future won’t necessarily be as generous as you’ve got in the past, all things being equal,” Murphy said.

More insight next month

For more analysis from Murphy on the Canadian used-car market, be sure to catch his presentation at the , which is being held March 27 and March 28 at The Westin Harbour Castle in Toronto. 

Murphy’s will dissect the 10 most important elements of the used-car industry, touching on “what these elements mean today and for the future of wholesale vehicle values and forecasted residual values,” according to a description of his session.

 

Wholesale car price behavior in last month of 2017

CARY, N.C. - 

Canadian Black Book’s second-ever release of its Used Vehicle Retention Index points to a wholesale car market that closed the year with quite a punch.

Wholesale vehicle values were up 3.8 percent year-over-year in December, keeping alive the used-car price gains from 2010, CBB said.

Meanwhile, the 0.6 percent month-over-month increase in values was the strongest sequential growth in five months.

“We are happy to distribute our second Index and first of 2018,” CBB vice president of research and editorial Brian Murphy said in a news release.

“In general, as supply of products rise across the board, on both sides of the border, prices domestically are expected to fall,” he said. “We will keep you up to date on these trends each month.”

The company calculates the index based on its published wholesale average value on 2- to 6-year-old vehicles as percentage of their original MSRP.

Elsewhere in the wholesale car market, the ADESA Canada Used Vehicle Price Index, powered by ALG, climbed after seasonal adjustments.  

The average sequential change in prices was a 0.2-percent decrease, however.

 

 

NextGear Capital rolls out funding portal through 3 digital auction partners

MISSISSAUGA, Ontario - 

While pinpointing six potential benefits, NextGear Capital on Thursday launched a multi-channel funding portal to offer customers its custom point-of-sale inventory financing solutions.

Cox Automotive Canada’s financial services brand highlighted this portal will be available through NextGear Capital’s digital auction partners, including EBlock, TradeHelper and Otolane.

“Bringing together these three leading online auctions on a single funding portal is an industry-first in terms of offering our clients best in class mobile and digital technologies to aid in the vehicle purchasing process,” said Jerome Dwight, national vice president for Canada at NextGear Capital.

 “Now clients will be able to view, bid and purchase vehicle inventory on any of these leading online auctions and seamlessly fund these purchases on their NextGear Capital credit accounts in a manner that is both convenient and secure,” Dwight continued.

Noting that many online wholesale purchasers in Canada cannot efficiently fund their transactions with a single integrated credit provider, NextGear Capital and its digital auction partners are working together to enable their clients to fully finance their vehicles instantly across multiple channels.  

In addition to being a destination for current NextGear Capital clients, the company added that digital auction partner clients will benefit in many ways, including:

—Ease of use to purchase and finance inventory from leading digital auction providers in Canada

—Safe and secure online funding for clients through NextGear Capital

—Additional liquidity and buying power for clients

—Greater access to a larger array of digital auction partner inventory

—Faster online credit approvals with quicker speed to market

—Custom tailored finance solutions designed for both franchise and independent dealers, wholesalers and exporters

For more information about how NextGear Capital in Canada, call (877) 864-9291.

Canadian Black Book shares its first Used Vehicle Retention Index

MARKHAM, Ontario - 

What has been a staple of its used-vehicle analysis in the United States is now coming to Canada.

As Black Book has compiled in the U.S., Canadian Black Book announced today the release of its first Used Vehicle Retention Index for Canada.

Editors highlighted the index will serve to offer what they called “unbiased and accurate” insights and statistics regarding the health of the used wholesale vehicle market in Canada. This inaugural edition covers the month of November.

“We’ve used this type of index data internally for many years, and are now packaging it up to provide Canada’s auto industry a free monthly resource to help monitor the ongoing vital signs of used vehicle pricing domestically,” said Brad Rome, president of Canadian Black Book.

“This information is impartial to any brand, and can help guide decision makers with accurate figures regarding the strength or weakness of used-vehicle prices,” Rome continued.

Just like in the U.S., the Canadian Black Book Used Vehicle Retention Index is calculated using Canadian Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as a percent of original typically-equipped MSRP. Canadian Black Book’s wholesale average is a benchmark value for used vehicles selling in the wholesale auctions with the vehicle quality in average condition. The index is weighted based on used vehicle sales volume and adjusted for seasonality, vehicle age, mileage, condition, and inflation (MSRP).

Aggregated from daily vehicle value updates, and captured throughout thousands of wholesale vehicle transactions across the country, the Canadian Black Book Used Vehicle Retention Index is designed to represent data across all regions of Canada.

“The index is based on a comprehensive list of vehicles included in the Canadian Black Book wholesale database, and includes no bias toward any brand, data source or region, ensuring an accurate report of the used-vehicle market,” the company said

The index will provide automotive industry professionals and watchers with insight regarding trends with comparisons year-over-year and month-over-month. From a more macroeconomic perspective, it will illustrate pricing performance since the index commenced with data from 2005.

“We are always being asked about the overall state of used vehicle value retention, which we are happy to answer.  This new regularly published index will just make it easier and provide a more visual means to get those answers and see the direction of prices in Canada,” said Brian Murphy, vice president of research and editorial at Canadian Black Book.

This first index illustrates the effects of the “economic pain” of 2008-2009 in the index.  This “pain” becomes even more visible after examining full-size trucks during that time as prices fell more than 15 percent nationally. 

Late 2009 saw what editors dubbed as a false recovery of prices, followed by falling prices again. However since the middle of 2010, Canadian Black Book noted there has been a remarkable and steady growth in prices overall. 

Today the index — — is currently at its highest level (102.4) since it was first calculated using 2005 data.

Editors determined the strongest segments are full-size luxury crossovers/SUVs, midsize crossovers and small pickup trucks.  The segments with weakest performance are the near-luxury cars and subcompact cars, both perform considerably below the market average.  Both however have strengthened in recent months. 

A more detailed index at the more granular segment level will be made available for Canadian Black Book clients upon request.

The index will be posted monthly on .

The latest U.S. index update can be found here.

August's top 10 most-funded used-car models

CARY, N.C. - 

The latest monthly report on from Dealertrack Canada shows the Toyota RAV4 compact crossover has bumped the Mazda3 compact car to 11th place this month.

As compact crossovers continue to be popular with used-vehicle buyers, the only passenger cars remaining on the top 10 list include the Honda Civic, Hyundai Elantra, Toyota Corolla and Chevrolet Cruze.

Looking back, 2013 was the most popular model year for Toyota RAV4 used-car buyers, according to Dealertrack network data.

Currently, the Toyota crossover is particularly popular among older consumers, Dealertrack shared. 

With an average age of the consumer at 44 years old, the RAV4 is the highest vehicle on the top 10 list.

Additionally, this month, both cash prices and the amount of funded used vehicles in Canada increased. 

On a year-to-year basis, the total number of funded used vehicles in Cox Automotive Canada’s Dealertrack network has climbed 6.7-percent since last year.

Of the top 10 vehicles, eight saw average cash price gains.

Compared to last year, altogether the 10 vehicles averaged a 3.5-percent increase.

In addition to the top 10 vehicles listed in the window above, full rankings can be found .

The rankings are based on total volume of vehicles funded through the Dealetrack Network.

TradeRev, ADESA partner in Canada to promote app at 14 locations

TORONTO - 

TradeRev has announced it will now have a physical presence in 14 ADESA auction locations after partnering with ADESA Canada to encourage dealers to use TradeRev’s mobile app before sending cars to a brick-and-mortar auction.

Hands-on assistance from ADESA sales teams will be available at the auctions to help dealers load their inventory onto the mobile app auction platform, according to TradeRev.

“Mobile technology is disrupting the wholesale auction marketplace by empowering dealers and putting them in full control,” TradeRev chief executive officer and co-founder Mark Endras said in a news release. “ADESA is North America’s premier auction marketplace with thousands of strong, trusted dealer relationships. Partnering with them to accelerate the ‘Digital First’ revolution is exhilarating for both companies and incredibly exciting for our shared customers.”

TradeRev and ADESA also announced a series of exclusive partnerships including more than 100 dealerships throughout Canada earlier this year.

As a result of the recent partnerships, tens of thousands of vehicles have been added to TradeRev’s network of buyer and seller dealers, the company said.

“ADESA is committed to helping our customers buy and sell inventory as quickly and efficiently as possible – regardless of the channel,” said Trevor Henderson, chief operating officer of ADESA Canada. “No one can do this better than ADESA, TradeRev and the KAR family of companies. We’ve been the online services leader in Canada for many years and we are proud to extend the digitization of our industry to help dealers launch and win auctions from the palm of their hands.”

TradeRev is available nationwide in Canada and in 10 markets across the U.S. ADESA currently holds a 50 percent stake in TradeRev.

According to TradeRev, more than 500,000 dealer auctions have been launched through its mobile app, which has produced over 6 million dealer bids.

July's 10 most-funded used-car models

MISSISSAUGA, Ontario  - 

In its latest monthly report on , Dealertrack Canada spotlighted the 2016 Dodge Grand Caravan.

For July, the minivan was third on the list, which is based on data from the Dealertrack online credit application network, and the only vehicle in the top 10 that saw a real meaningful price change from June.

But Dealertrack also shared a few other reasons the Grand Caravan was unique, including this nugget: three-fifths of its drivers (61 percent) are married.

Now, the fact that a lot of minivan drivers are also married folks might not be shocking news.

But no other vehicle on the list had that high a proportion of its ownership being married.

And it wasn’t even close: Second on the list was the Dodge Journey at 51.8 percent.

Other interesting tidbits, per Dealertrack Canada:

  • Average age of buyer was 43, which was second-highest on the list, next to the Ford Escape (44).
  • Nearly two-fifths (38 percent) had a trade-in with their purchase.
  • Top city for these buys was Edmonton, Alberta. 
  • Among its buyers, 60 percent are male, and 40 percent are female.
  • Average annual income was $56,409, second-highest on the list next to the Ram 1500 ($69,046)
  • Forty-four percent added an extended warranty

Here’s how the price shifts worked last month. The used 2016 Grand Caravan’s average cash price was $20,156 in July, which was up 2.6 percent from June.  All other vehicles on the list saw their prices change by less than 1 percent (be it an increase or decrease). 

The van’s 12.2-percent year-over-year price increase was also the most significant among the top 10 and the only double-digit change either direction.

The full rankings, which can be  and in the window above, are based on total volume of vehicles funded via the Dealetrack Network last month. 

 

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