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Why the Time to Sell Used Inventory is Now

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Wholesale vehicle values experience seasonality – prices rise during the spring and fall during the rest of the year. Due to this seasonality, dealers may hold vehicles in anticipation of getting higher prices in the spring. From our research, we’ve found that this strategy may be ill-advised.

 

In its latest research study, Automotive discusses “velocity,” or selling more cars faster to improve efficiency and profitability. The findings reveal that spring season price “bounces” have been smaller the past two years while depreciation has increased. If these trends continue, dealers may want to consider selling now rather than waiting. And for buyers, given that vehicle supplies are rising fast, delaying their auction purchases may result in fewer retail sales and profits in the long run.

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