Last updated Wednesday, January 12, 2005
As usual, December proved to be a month where the market made something of a rebound. Vehicles were scarce, it had the usual compressed buying and selling window, and there was some optimism in the air. Prices and activity were clearly on the upswing.
We expect January to continue the trend and probably build on it. Vehicles continue to be very scarce as trades are few and far between and lease terminations are way down as manufacturers are experiencing the fruits of their efforts to decrease the leasing of new vehicles. All this bodes well for the market, and we think that prices will stabilize and perhaps rise in some areas as dealers compete for product.
Current year and very late model vehicles may be something of an exception as manufacturers continue to use incentives to fuel demand for new vehicles. Where new and exciting product is creating demand (e.g., Acura 3.2 TL) late model prices are holding up, but the same old, same old products bolstered by incentives (e.g., Jaguar X-type) are falling rapidly.
Convertibles and sport coupes have already begun to rebound and can be expected to continue to increase in value over the next several weeks, especially if the weather holds out (it is January, after all, and we’ve had little or no snow).
Actually, weather permitting, we expect January 2005 to be one of the stronger months we’ve had for quite a while. Our auction consultants have told us that activity and prices are strong pretty much across the board wherever they go. We get the same reports from the many wholesalers and dealers frequenting the wholesale complex in and around our offices in Teterboro, NJ. It is certainly a pleasant change from the market doldrums of the previous October and November and we look forward to its continuation.