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Most plug-in electric vehicles will depreciate more dramatically over five years than their conventional gasoline counterparts, according to a new report from Kelley Blue Book via USA Today.
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For the past three years, everyone has been a remarketing genius. The low inventory of used vehicles in the wholesale market helped inflate resale values by about 10 percent. However, as greater volumes of used vehicles begin to enter the wholesale market, vehicle supply will start to meet buyer demand, which will put downward pressure on resale values. In many ways, the new used-vehicle market will demand returning to the basics, namely recognizing the seasonality of the used-vehicle market.
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The used-vehicle market has always been driven by supply and demand. In the 2013 calendar-year, vehicle supply in the wholesale market continued to be tight relative to demand, helping bolster resale values.
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Setting a depreciation reserve when using an open-end, TRAC fleet lease isn’t high-level mathematics. But, it takes experience and careful analysis. When used vehicle markets are strong, should you deviate from the norm?
Read More →Black Book’s recent overview of depreciation rates found that full-size cargo vans held their value in August, performing the best in terms of retention value, and that compact crossovers fell to the bottom of the pack, seeing the highest depreciation rate.
Read More →Key factors affecting prices beyond the model-year changeover are a larger number of trade-ins, with 60 percent of new-car sales involving one, according to Black Book, and a greater supply of off-lease models.
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Black Book recently released a new analysis of vehicle depreciation rates, noting that April generally is the end of the spring buying season for used cars and that this was the case last month.
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Truck, van, and utility vehicle segments are showing better retention values than cars, but will they hold through 2013?
Read More →How much of a fleet’s annual budgeted dollars are wasted? Is it 5 percent, 10 percent, or even more? In my mind, eliminating waste is the proverbial low-hanging fruit. Before implementing new fleet initiatives requiring new dollars, let’s make our No. 1 priority to stop the waste of existing dollars. Let's examine the fleet-related areas that are rife with waste and discuss the protocols you need to minimize it.
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