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Shift Technologies, which saw its revenues nosedive and other losses deepen in its fourth quarter, announced measures it’s taking to return the company to profitability including the layoff of 30 percent of its workforce since the beginning of 2023. During Shift’s March 28th conference call outlining its financial results for its fourth quarter that ended Dec. 31, and the entire 2022 year, CEO Jeff Clementz said 2022 was “a year of significant change for Shift” and the company has adjusted its strategy to ... [Read More]

It appears that used-vehicle sales for 2023 will be stronger than projected a few months ago, resulting in a market that’s flat compared to 2022, rather than softer. Still, inventory and affordability remain ever-present challenges that dealers must navigate in pre-owned. Or as Cox Automotive senior manager of economic and industry insights Chris Frey put it in a call with the industry and media on Monday, “In the spirit of spring, the used market looks like ... [Read More]

Consumer interest in used electric vehicles has more than doubled year-over-year, and many of those with an EV trade-in are apparently pleasantly surprised at what their trade fetches. Though the industry is still working to solve challenges in the pre-owned EV space —  like battery health — both of those findings from the second annual […] [Read More]

You’re likely not the only one with significant interest in how auto defaults and vehicle repossessions are trending. It’s why Jeremy Robb, senior director of economic and industry insights at Cox Automotive, delved into the subjects during an episode of the Manheim Market Insights Series posted online last week. “Due to economic volatility we’re seeing in today’s financial markets, we’re getting a lot of questions around auto loan default rates and repossessions. We want to make a few things clear for our audience,” Robb said. Robb then went into four data points that might interest finance companies of all sizes ... [Read More]

Given current market dynamics and the way supply and prices have behaved in recent months, dealers may be wise to grab more used cars and sell them quickly. According to the ZeroSum Market First Report released Thursday, the last four months has been a rollercoaster in ... [Read More]

Cox Automotive and Edmunds experts explained the potential intensifying challenge for dealerships and finance companies to get consumers the credit they might need to take vehicle delivery amid the rising interest rate environment. A situation that even the Federal Reserve acknowledged to become even more complicated when policymakers unanimously chose to raise the target range for the federal funds rate to 4.75% to 5%. “Since our previous meeting, economic indicators have generally come in stronger than expected, demonstrating greater momentum in economic activity and inflation,” chair Jerome Powell said after the Fed announced its latest rate increase on Wednesday. “We believe, however, that ... [Read More]

Wholesale vehicle prices closed 2022 having declined sequentially for seven months in a row, reaching at average of $14,316 for December, which was down 0.9% month-over-month and 11.8% year-over-year, according to ADESA chief economist Tom Kontos’ analysis of the market. Since then, Kontos said by phone Wednesday, wholesale prices have risen approximately $1,500, as values so far in March are around $15,500. But dealers are ... [Read More]

During the company’s recent earnings call to announce fourth-quarter and full-year 2022 results, Jason McClenahan, CEO of EBlock parent E Inc., explored the current wholesale environment, offering insight on conversion rates, pricing, demand and more. McClenahan said that revenue for EBlock was up due in part to the auction transactions completed in the past 12 months, as well as ... [Read More]

KAR Global has a clear digital focus. Also, the company has paid down the majority of its debt. “We have meaningfully reduced our cost structure,” said KAR chief executive officer Peter Kelly. Those three items were part of a list of ways that KAR is positioned differently at the beginning of 2023 than it was at the beginning of 2022. It was one of various lists Kelly used to make his points during KAR’s fourth-quarter 2022 earnings call that took place on Feb. 22. Also, on that list of differences from the beginning of 2022 ... [Read More]

The first two months of 2023 were a bit of a surprise for the certified pre-owned vehicle market. Cox Automotive forecasted in January that CPO sales would fall 11% in 2023, following a 10% decline last year. But through February, year-to-date certified sales are up almost 14%, the company said.  So, what gives? Ironically, it’s the ... [Read More]