U.S. auction volumes to top 10 million in 2017
The volume of used vehicles sold off at auction in the U.S. is projected to top 10 million for the first time. Figures released by the National Auto Auction Association show auction volume for last year stood at 9.8 million units. The NAAA predicts this year's auction volume to hit 10.1 million units.
That would be an all-time record, but it would also be evidence of slowing growth. Year-on-year increase in auction volume was 6.5% in 2015, 5% last year and is projected to be 3% in 2017. The slowdown is due to declining dealer consignments, down 1% in 2016 and forecast to go down 2% this year. That trend slightly offset by gains in commercial consignment, up 13% last year and expected to grow 9% this year.
The NAAA says the large volume of new light-vehicle sales from 2010 to 2016 created a large number of off-lease, off-rental and off-fleet vehicles that will continue to come back onto the market as commercial consignments to auctions. Dealer consignment growth, because it is closely timed with new sales and related trade-ins, will continue to decline slightly.
In a separate report, J.D. Power Valuation Services figured last year saw 4.57 million auction sales of vehicles up to 8 years, an 8% year-on-year increase, the most since 2010. For late-model units, i.e. cars up to 3 years, the auction total stood at 2.71 million units, a 12% increase.
Image: public domain
| 24/01/2017 | Frank Jacobs