November 18, 2013
www.usedcarnews.com
ON THE WEB: More Vehicles Take to The Roads
SEE OUR AD INSIDE ON PAGE 8
Consumers Pay for Better Fuel Economy
Experian Automotive announced that the number of cars and light trucks on the road reached 247.9 million in the third quarter. Additionally, findings showed that the average age of vehicles on the road was 10.9 years in the second quarter, almost a full year older than was recorded in the second quarter of 2009.
Certified Sales Remain Strong, But Slowing
AutoData Corp. reports that certified sales were 177,820 for October. up month-over-month and year-over-year. There were 27 selling days in October 2013 versus 26 in October 2012 and just 23 in September 2013. The selling rates reflect a slowing from the record-setting rates of the past six months.
Senators Question CFPB
A group of 22 U.S. Senators is asking the Consumer Financial Protection Bureau to justify its effort to eliminate dealer participation.
Photo by Jenny King IT’S THE FUEL ECONOMY: Volkswagen uses this Passat to promote the company’s dedication to fuel economy. Consumers are willing to pay more for vehicles that get better mileage. By Jenny King
Ford Motor Co. is touting its Eco-Boost turbo-gas engines for cars and light trucks. Volkswagen is promoting its turbo-diesels, present and future. Both companies emphasize the higher residuals their engines are producing.
Projected numbers from ALG show that a 2014 Fusion 2.0 EcoBoost is worth an additional $1,625 over the average price after 24 months - very close to the $1,795 added cost for the engine. The 2.0-liter EcoBoost in a 2014 Taurus adds $996 to the cost of a new car and
likely will provide a $550 bump in value in 24 months. Among trucks, the 2.0-liter EcoBoost, a $1,196 option in a 2014 Escape, may even gain in the short range. The ALG figures say its resale value after one year is $1,325 higher than average and after 24 months might be $1,125 higher than aver-
age. “EcoBoost-equipped cars are seeing good results,” said Eric Ibara, director of residual values at Kelley Blue Book. Ibara credits the improved horsepower and fuel economy of the relatively new turbo-charged gas engines. Continued on page 5
Smaller Market Attracts Large Used Car Dealer Rush - Dated Material
By Ted Craig
A middle market city in the Midwest has become a hotbed for used-car operations. Wisconsin dealership group Russ Darrow Group opened its new Russ Darrow Used Car Superstore in Green Bay, Wis., in September. The facility offers approximately 150 pre-owned vehicles, on site, with more than 1,000 additional vehicles available through the Russ Darrow Group system. The operation includes a J.D. Byrider franchise.
The entry of this large auto retailer comes at a point when one dealer says the city is near capacity for used-car stores. “There can only be so many market dollars to go around,” said Thomas Zdroik, owner of We Finance Inc. “We certainly are at the saturation point.” Green Bay is Wisconsin’s third largest city, with a population of 104,507 in the city proper and 306,241 in the metro area. Zdroik said it was only a matter of time before larger players moved into the area. The state’s used-car market has been changing since a 2006 law made self-help repossessions easier.
Imagine controlling your used car inventory from anywhere. With the SmartAuction® mobile app, you can. ©2013 Ally Financial. All rights reserved. SmartAuction is a registered service mark of Ally Financial Inc.
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