Slight Market Improvement Predicted for 2010



Source: http://www.autoremarketing.com/ar/news/story.html?id=10589

Auto Remarketing - December 16, 2009

Situation
Used vehicle market to maintain similar pace next year as it did in 2009
According to OPENLANE's Nagi Palle, company's VP of analytics
New-vehicle sales market to make modest increases in 2010; still lag from pre-2009 levels
Demand to be especially strong during 1st 3 quarters of 2010
Off-lease volumes could bounce back during last quarter of the year
Number of dealerships shrinking; survivors will look to online resources beyond wholesale auctions
Significant Points
Strong demand will drive wholesale market throughout 2010
Reduction in trade-ins and overall sluggish new-vehicle market primary wholesale demand drivers
Dealers will likely turn to online auctions even more in coming year
Online auction penetration to reach 15% by 2013
Growth stems from online auctions incorporating more attributes of physical locations
Says
"Headwinds from diminished vehicles per household and a lower pent up demand going into 2010 will create resistance to the new-car market breaking free." -- Nagi Palle, VP of analytics, OPENLANE