Used-car auction volumes seen rising 5% in 2013
Growth fueled by 2012's rise in leasing, sales to rental fleets
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ORLANDO -- New-vehicle sales to rental car companies in 2012 rose 11 percent in the United States to 1.55 million units, which will help increase the number of vehicles returning to the used-car market in 2013, predicts an annual report on the state of the used-car industry.
The 2013 Manheim Used Car Market Report predicts that unit sales at National Automobile Auction Association member auctions will grow this year by 5 percent to about 7.9 million vehicles.
Sales of new cars and trucks to rental companies last year were the highest since 2007 but still well below the 2.1 million units sold into rental fleets in 2005 and 2006, the report says.
The report, which cites rental unit sales data from Auto Rental News, also cautions that "rental-car company purchases of new vehicles will not reach 2 million units a year again anytime soon."
The report was released at the NADA convention today.
Though the Detroit 3 made up well over 60 percent of the sales to rental companies last year, Japanese brands, such as Toyota, had the largest year-over-year percentage sales increases to those buyers.
The report also says that the number of new-vehicle leases grew to 2.5 million last year, up from 2.1 million in 2011 and 1.1 million in 2009, when many financial institutions pulled back on leasing during the worst of the recession.
Last year, leases accounted for almost 21 percent of all new vehicles retailed, the report says. That is up from 20 percent in 2011 and 13 percent in 2009.
The report notes: "Projected future residual values used in lease contracts have risen to reflect strong past price performance in the wholesale market, more disciplined new vehicle marketing by manufacturers and better end-of-term remarketing practices."
You can reach Arlena Sawyers at asawyers@crain.com.
