In April, General Motor’s Chief Financial Officer stated that the prices of used cars in their leasing portfolio will decline 7% this year. These concerns are in line with Ford Motor Co. who cut its lending units profit forecast by $300 million last year.
So what does all this mean?
- It means that the largest sector in American manufacturing is heading for a tough stretch, which is bad for the automotive industry but also bad for the economy overall (automakers are responsible for 3% of America’s GDP).
- For those of us in wholesale remarketing, recoveries are going to miss estimates, and challenge organizations at many levels.
- Historical inefficiencies of channels are going to stand out and require attention.
- Organizations are going to have to get smarter to offset value losses
Low Value Vehicles In A Deteriorating Market
There is some good news. None of this means that demand will disappear. The market for disposable transportation is an important part of our American experience, it keeps us working, moving and hopefully growing. However, opportunity for success is going to be harder to come by than any point in the last 20 years.
At ARS we understand that every client has a unique portfolio. Using up to the minute data and a responsive approach we are able to place each and every vehicle into the place to succeed. In this NEW NORMAL marketplace, your remarketing returns cannot be looked at in the same way. We believe that in order to maximize your returns it takes a segmented Full Channel Remarketing™ strategy. Advanced Remarketing Services can help. We’ll work with you to review your entire portfolio and develop strategies to navigate the shifting opportunities. Give us a call, drop us an email or visit us at www.arscars.com
If you have a pool of low value vehicles in your portfolio or if you’re looking at ways to maximize recoveries, Reach out to us at ARS. Send us an email; firstname.lastname@example.org
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