December 18, 2017
www.usedcarnews.com
2017 MOVERS AND SHAKERS
Ernie Garcia III
Maura Healey
Ben Lange
The son of DriveTime’s founder, Garcia
The Massachusetts attorney general is one
Lange, the CEO of America’s Auto Auction,
made his own mark this year when he took
of those state regulators who saw an opportu-
more than doubled the size of his group with
Carvana Co. public in an initial ofering in
nity to step up her enforcement actions when
the purchase of Auction Broadcasting Co. in
April. The online used-car retailer now has
it looked like the federal agencies were going
March.
a presence in 41 markets. The irm recently
to take a light approach. Healey took actions
The move made America’s the third largest
raised another $100 million through a private
against inance companies and dealers. Her
auction chain in the United States with 20 lo-
placement of preferred stock.
suits attacked basics of subprime inance.
cations.
Wholesale Prices Remain Relatively Strong
Rush - Dated Material
The price boost of the hurricanes seems to have passed, but wholesale prices remain strong despite growing volumes. The Manheim Used Vehicle Value Index declined to 134.5 in November from 136.3 in October. This is the lowest level since August, but still represents a 7.8 percent increase from a year ago. On a year-over-year basis, all major market segments except midsize cars saw gains, Manheim reports. “Though wholesale market values saw strength in the spring and
summer as a result of growing retail demand, most of the gains since August were a result of the recovery following hurricanes Harvey, Irma and Maria,” said Cox Automotive chief economist Jonathan Smoke. “As has been the case with prior devastating storms, used vehicle prices are now returning to prestorm levels. “Underlying vehicle depreciation rates have been accelerating to catch up to where prices would have been without the abnormal demand and scarce supply in Septem-
ber and October.” The Manheim Index adjusts wholesale prices for mix, mileage and seasonality. The Black Book Used Vehicle Retention Index takes wholesale average values on two- to six-year-old used vehicles, as a percent of original typically equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition. That Index rose to 115 from 114.6 in October. “The continued strengthening of
the Index indicates 2017 has been a little stronger than expected for used cars and trucks, helped along the way by the hurricane replacement activity,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “Any continued strengthening over the next few months will mean we’re getting an early jump at the oncoming tax spending season, when consumers use their checks to replace their vehicles in the spring.”