Like many industries nationwide, automotive retail has had to pivot and figure out ways to do business digitally. The used-vehicle market is no different. Joining us to talk more about wholesale trends and valuations is Larry Dixon, Senior Director of Valuation Services at J.D. Power.
Around mid-April earlier this year, used-vehicle prices fell off around 15-16% in an unprecedented decline. Since then, prices have boomed 35%. Year-over-year, prices have increased by 12% with July showing the strongest numbers. Lower new and used vehicle inventory certainly helps support the demand for used vehicles which, in turn, drives up prices.
The federal stimulus helped release the large amount of pent-up demand in the market as well. Not only did this help used-vehicle prices, but used retail sales also. According to J.D. Power’s PIN data, used-vehicle sales were up 11% year-over-year at franchise dealers.
Larry Dixon has over 20 years of direct automotive industry experience, including vehicle valuations, residual value development, and OEM consulting. As Senior Director of Valuation Services at J.D. Power, Dixon has analyzed and advised clients on automotive product execution, including pricing, design, content, sales targets, and used market price performance. To hear more great insight from Larry Dixon, be sure to watch our entire interview above.
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