Automotive Buy Sell Report has taken a holiday for Christmas and New Year’s, but we will be back with a full issue on January 8!
Meanwhile, as the year draws to a close there are mixed signals in the auto retail and buy sell markets. New car sales growth is slowing. J.D. Power/LMC Automotive forecasts 2019 new vehicle total sales to decrease 1.4 percent compared to 2018 to 16,998,800 units. New retail sales will fall more sharply, down 1.7 percent to 13,717,600 units.
Average transaction prices continue to rise, however, which accounts for a consumer migration to used vehicles. That trend has helped dealerships continue to show profits despite the drop in new car sales. Used plus finance and insurance are boosting the bottom line.
The number of buy sell transactions in 2019 slowed somewhat compared to 2018 as the publics mostly stayed out of the market. Some interesting private equity buyers entered the market this year, however. And Asbury Auto Group’s purchase of Park Place Motorcars in December was a bit of a cherry on top to end the year.
Thanks to all our great contributors. We look forward to working with you in 2020. Thanks as well to all the dealers who talked with me for profiles.
J.D. Power/LMC Automotive forecasts 2020 new car sales to show a 1.7 percent decrease compared to 2019 to 16.8 million units. Dealers will again be challenged to find alternative sources of profit; I am confident they will do so
The buy sell market should remain fairly lively, so continue to visit ABSR for transaction news and insights.
Happy New Year!