Current sales of electric vehicles are largely driven by incentives, and while incentives help move the metal on the new-vehicle front, they have a negative effect when it comes to residual values.
Outside factors such as a record-spanning government shutdown, the polar vortex, and a hit to consumer confidence led to a slow start to used sales in 2019.
KAR's Warren Byrd earned Remarketer of the Year, while ARI's Chris Clarke won Consignor of the Year.
Nick Peluso, president of Manheim Digital Marketplace, received the Ed Bobit Industry Icon award on Tuesday during an award ceremony at the 2019 Conference of Automotive Remarketing at the Caesars Palace in Las Vegas.
The Federal Reserve has voted unanimously that it would not hike interest rates any further for the remainder of 2019.
The 2019 Conference of Automotive Remarketing is less than two weeks away, and this year, the annual conference will feature a panel discussion led by managers of some of the leading commercial fleet leasing companies.
Prices and volume are not expected to plummet in 2019, but industry experts seem to feel that the best-case scenario will be a plateau, and more realistically, will fall slightly.
Deprecation was low through most of 2018. Segments such as sedans performed better than they have in years past, while trucks and SUVs continue to retain their values well.
Prior to 2018, sedans at auction had experienced three years of consecutive value declines. For sedan-heavy fleets, this may have meant an impact to total cost of ownership for those vehicles, as profits from remarketing them would have suffered. Now companies with sedan-heavy fleets may be finding that a window of opportunity to remarket those vehicles for better profit has emerged.
ACV Auctions Inc. is on pace to sell over 100,000 vehicles by the end of 2018, after selling 8,600 vehicles in August, according to the company.