State of the Remarketing Industry: Mid-Year Status Report
August 24, 2022
A successful remarketing approach greatly depends on the ability to access market insight. The more you know about current trends and conditions, the better you’ll be able to prepare for what’s to come; that’s why our team of remarketing specialists monitors the used vehicle landscape so closely – to provide you with the latest need-to-know updates. That said, let’s recap what’s been happening in the industry this year and take a look at what to expect for the second half of the year.
What’s happened so far?
The used asset market to date
At the start of 2022, new vehicle inventories remained low, which led to unusually high values within the used vehicle market. Vocational trucks in particular, experienced record highs early in the year.
As the months progress, however, many factors have pushed the demand for used vehicles down, including the drastic rise in fuel prices, interest rates and overall inflation. In recent weeks, signs of improvement in the availability of new vehicles has also influenced the market.
As retail inventory grows, the average number of days to sell is also increasing. Because of this, dealers have eased up on purchasing inventory for their dealerships; again, causing downward pressure on the values of used vehicle inventory.
In regards to the equipment sector of the market, values are consistently improving, with earth-moving and lift/aerial equipment in high demand.
Predictions for the second half of the year
Our remarketing experts forecast that used vehicle values will flatten and trend downward through the remainder of Q3, although we may see a slight rebound occur around early fall. As the economy continues to stabilize, there will be a rise in vehicle repossessions, making more inventory available to dealers within the wholesale marketplace.
Auction resale values are projected to follow a more traditional deprecation decline into the fall and winter. Even still, the demand for used vehicles will persist, as new inventory levels won’t catch up to pre-pandemic numbers this year. The current forecast projects that a total of about 14 million new vehicles will be sold in 2022, approximately 5 million less than 2019.
How to Prepare
Best practices moving forward
Take advantage of the current valuation of your assets. Historically, the used vehicle market is still very strong, but it won’t stay that way forever. On a similar note, the equipment market is actually expected to flatten at current levels, which means now is the time to sell. So, if you have a “boneyard” or “scrap yard” of underutilized vehicles or equipment, get those units on the market as soon as possible to maximize proceeds. As your remarketing partner, we’ll ensure the process is seamless. Regardless of the location or condition of your assets, with our extensive network spanning across the nation, we’ll get them exposed to the best buyers and sold at an optimal price, saving you time, money and effort in the long run.
Looking for more insight on how and when to remarket your fleet vehicles? Allow our experienced agents to provide perspective. With a data-driven approach, we’ll help you identify the right conditions and channels for selling in the current market. Contact us today to get started.