March 17, 2014
www.usedcarnews.com
ON THE WEB: Subcompact Vehicles Retain Their Value
GM Recalls More Than 1 Million Cars
Three-year-old cars in the subcompact segment have the highest retaining value at 54.4 percent of the MSRP for a typically equipped model, says NADA Used Car Guide. Meanwhile, the electric vehicle segment ranked the lowest at 39.9 percent.
Certified Sales Set Another Record
February was another record-setting month for certified sales. Franchise dealers sold 179,042 certified pre-owned vehicles in February. There were 24 selling days in February. The daily selling rate was 7,460, an all-time high.
Wholesale Prices Rise From Year Ago’s Level
Wholesale used vehicle prices rose 0.8 percent in February. The Manheim Used Vehicle Value Index reading was 123.3 in February, which represented a 1.1 percent increase from a year ago.
HHRecall: General Motors is recalling 1.4 million vehicles, including 2005-07 Chevrolet Cobalts; 2007 Pontiac G5s; 2006-07 Chevrolet HHRs and Pontiac Solstices; 2003-07 Saturn Ions and 2007 Saturn Skys. By Ted Craig
It’s early in the year and already two of the nation’s largest automakers have issued massive recalls, with General Motors recalling more than 1 million vehicles. GM is recalling 1.4 million model year 2003-2007
Chevrolets, Saturns and Pontiacs. A combination of extra weight on the key ring and jarring due to road conditions may cause the ignition switch to move out of the run position. If the switch is not in the run position, the air bags may not deploy if the vehicle is involved in a crash.
The recall comes at a time when GM had started showing progress in the quality rankings. It now must face increased scrutiny from consumers and regulators. “It’s not fair, but the domestics pay a higher price for recalls,” said Duane Trojniak, vice president of statistical modeling for the
RDA Group. Trojniak spoke on a panel at a recent event covering recalls and warranties put together by the Society of Automotive Analysts. Toyota has actually led all brands in recalls for the past two years, but remains atop most quality surveys. Continued on page 15
Rush - Dated Material
AutoTrader.com Sees Prices, Volume Driving Market AutoTrader.com recently shared three trends dealers need to pay close attention to this spring. The first is new-vehicle pricing. Even with a slower than expected start to the year due to the weather, the auto industry is still expected to return to new-vehicle sales levels not seen since 2007, increasing sales between 3.5-4.5 percent in 2014. However, not all manufacturers will achieve their much higher internal 2014 volume target. As a result, the competitive landscape will provide plenty of purchasing opportunities as manufacturers continue to offer aggressive pricing and incentive programs.
Used-vehicle prices, meanwhile, are expected to see slight downward pressure in 2014 due to continued increase in supply. Many of these new car buyers will likely have a current vehicle that they need to offload. In addition to more shoppers trading in their current vehicles, a notable volume of leased vehicles will be returning to dealership lots this year. Finally and most importantly, access to credit will continue to open up in 2014 – even in the subprime market. This will continue to increase the pool of potential consumers that will regain purchasing power not seen in several years.
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3/10/14 5:18 PM