With sales skewed toward utility vehicles, the average transaction price for light vehicles rose by $757, or 2.3%, from a year ago to $34,352 in February, the firm reported today.
‘Da Man’ has a message for the manufacturers flooding the market with inventory and the dealers who have to sell it off.
The group’s F&I operations posted a $60 increase in F&I profit per vehicle retailed during a quarter in which the nation’s eighth largest auto retailer chose volume over margin.
A sales mix in favor of utility vehicles drove up January’s average transaction price 3.3% from a year ago to $34,968. Among the greatest beneficiaries were the Detroit Three, with General Motors leading the way.
The expected regulatory rollback, plateauing sales, rising interest rates, and the push to change the in-dealership experience clouds the F&I industry’s future, EFG Companies said today. Four of the firm's executives offered their predictions for 2017.
After a record December capped off a record year for new-vehicle sales, January appears to be enduring a hangover effect, the vehicle information site said. It expects sales to decline 3% from a year ago to 1.13 million units.
The vehicle information site expects new-vehicle sales to total 1.15 million units in January, a 31.5% decrease from December and a 0.7% decrease from January 2016.
The good news, according to Edmunds.com, is the industry is on pace to top last year's record new-vehicle sales total. The bad news, the firm noted in a separate release, is car buyers are rolling over negative equity from their trade-ins in record numbers.
The NADA’s chief economist said the industry will sell 17.1 million new units in 2017. That forecast could rise by the end of February — that's if the the new administration delivers on its stated policy objectives.
Wholesale used-vehicle prices declined 0.7% in October, according to Manheim. Non-seasonally adjusted prices declined 2%, with the Manheim Used Vehicle Value Index increasing 0.6% from a year ago to 126.0.
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