Despite an uncertain economy, used-vehicle sales are expected to increase 4.9 percent this year over 2002, one industry expert says.
Tom Kontos, vice president of industry relations and analytical services at ADESA Corp. of Indianapolis, predicts that used-vehicle sales this year will reach 45.1 million units, up from a record 43 million in 2002.
Kontos was to preview ADESA's "Global Vehicle Remarketing North America" report at a press conference here today. The entire report will be released this month.
At a separate press conference, Tom Webb, chief economist at Manheim Auction Inc. in Atlanta, was to release "The Used Car Market Report."
The two reports present analysis of the retail and wholesale used-vehicle industry. Kontos and Webb agree that generous new-vehicle incentives have hurt used-vehicle prices.
"For all of 2002, used-vehicle values as measured by the Manheim Index averaged 2.9 percent below their 2001 level," wrote Webb in the Manheim report.
That report also states that franchised dealers' used-car profit is the same as new-car profit - $1,550. But given that the selling price of a used vehicle averages about $14,000, compared with $26,000 for a new vehicle, the gross margins are significantly different - 11 percent on used compared with 6 percent on new.