CARY, N.C. -

With the spring market ready to heat up like the weather, Auto Remarketing reached out to auction executives and other remarketing leaders to gain some clarity on what dealers could be seeing in the lanes or online when they are searching for wholesale inventory.

Despite the volume constraints that remain well-known and documented, the auction personnel who shared their thoughts with Auto Remarketing all voiced upbeat expectations about what they can offer dealers in the near term.

NORTH

Well-Known Challenges

When Auto Remarketing asked ADESA for its assessment of the spring market, president and chief executive Tom Caruso took a broad approach.

“Well, we all know the challenges. The whole-car supply will continue to be tight like it was in 2011, due in part to repos and off-lease vehicles being at historic lows,” Caruso began. “That said, there are definite opportunities with more dealer cars at auction. This creates an ideal marketplace for dealers to quickly turn vehicles into cash.” 

To assist dealers to get them the units they need, Caruso reiterated that ADESA has 70 auctions across North America.

“And we are actively helping dealers get the units they need at all of our locations,” he continued. “We’re progressively adding new national accounts and new dealer groups. We’re improving condition reports and increasing the number of vehicles customers can view online. 

“Basically, we are changing the way we do business by finding new ways to bring the auction to the dealer,” Caruso went on to say. “And the combination of the OPENLANE and ADESA teams now lets us reach dealers everywhere. We’re already one team, and now we’re building one marketplace for our customers. So even if there isn’t a physical ADESA auction in their city, there is an online presence to find them the cars they need.

“Adding OPENLANE to our existing dealer consignment and e-business initiatives provides access to more inventory. And our single sign-on for ADESA.com and OPENLANE.com makes it faster and easier to find that inventory,” he added.

How Late 2011 Is Influencing Spring

Manheim Pennsylvania vice president and general manager Tim Van Dam rewound back to late last year when discussing the spring market.

“The market started out lower than last year as new-car incentives were very prevalent and a strong December weighted in on used-car inventory needs,” Van Dam noticed. “We have seen a steady increase in values and demand since the first few weeks of January, as many dealers come to our location for vehicles that are harder to find anywhere else in the country. 

“Manheim Pennsylvania averages about 10,000 total vehicles every week, so the harder to find cars and trucks can be found here more easily. We anticipate our normal trends to increase as February brings significantly higher percentages of sale and increases in vehicle values,” Van Dam continued.

Breaking Ground in Pennsylvania

Meanwhile, Auction Broadcasting Co.’s first-ever location in the Northeast is bracing for its inaugural spring market action. ABC Lancaster general manager Greg Gehman shared what dealers can expect when the operation starts moving cars down the lanes in March.

“All I know is that we will try to give the best customer service that we can,” Gehman insisted. “We believe this business is all about relationships. To me, that’s the secret to success and we’re going to try to excel in this area.

When talking about the evolving technology in the marketplace, Gehman added, “Auctions have been storage grounds for years. Whether the units are sold over the Internet, they will still need a place for marshalling. I don’t see the physical auctions going away completely.”

Mild Winter Has Auctions Thinking Spring

Sliding over a few hundred miles, Kristie Griffin told Auto Remarketing that the spring market is her favorite time of year at Greater Milwaukee Auto Auction.

“The spring market is really strong, and many dealers prepare for the opportunities that tax season brings,” said Griffin, who is the GMAA’s president. “We have strong consignment commitments, even weeks in advance, right now. We see dealers buying and saving inventory during the fourth quarter, so they can resell in February and March.

“We have expanded to 30 paved acres, so this enables us to store vehicles for dealers looking to sell heavy in spring market,” she went on to highlight. “Notably, our mild weather, here in Wisconsin, this year, has saved us a fortune in operating expenses. We specialize in strong dealer consignment retentions with incredible sales percentages.”

Furthermore, the territory of Manheim market vice president Art Soudek includes Wisconsin, as well as Illinois, Minnesota, Missouri and Nebraska. Soudek described how the relationship between dealers and company auctions in his jurisdiction has gotten tighter.

“Our sales team and auction based employees are working closely with dealers and commercial customers to ensure that they understand the different channels available for buying and selling within our wholesale environment,” Soudek explained.

“We will continue to collaborate with dealers matching their needs with in-lane and digital solutions,” he continued. “While tight inventory levels remain challenging and retail activity is still gaining momentum, our full service offerings are able to provide customers the tools they need to succeed. My feeling is that momentum in the wholesale marketplace will grow as we get further into the year.”

Technology at BSC America

BSC America vice president Michelle Nichols-Neff highlighted what technology is about to bloom as the spring market gets into full swing.

“We have just launched a new website to make searching for inventory fast and convenient,” Nichols-Neff noted.

“At www.bscamerica.com customers can sign up for the lists they want to receive,” she explained. “So, many times dealers are blasted with lists they may not want. This way, they can tell us what they are interested in seeing.

“We asked our customers what they would like to see in our new site, and we are always trying to make sure our site is customer friendly,” Nichols-Neff went on to say.

SOUTH

Busy Activity in Atlanta & Birmingham

ABC Atlanta GM Corey Sanford mentioned the site recently hired an Internet sales manager, directing Melissa Warhola to grow the operation’s online presence.

“Melissa has increased our OVE sales by 10 fold, and she continues to grow the business,” Sanford shared. “This has given us exposure to a wider variety of dealers that were not using the auction lanes to sell aged inventory and new-car trades which has helped broadened our reach into a market scarce of quality new-car trades.

“We also have sent our sales reps further out into the field than in the past and have landed some quality accounts from as far as Nashville, Tenn., Knoxville, Tenn., Savannah, Ga., and even Jacksonville, Fla.,” Sanford added.

Sanford also reflected on how the first quarter at ABC Atlanta has unfolded thus far.

“Our experience in the first quarter is a market where nice cars are bringing retail money but where the older, high mileage units remain soft,” he noticed. “In the past, I have enjoyed lucrative auctions throughout late December and on into January on the dealer side as they prepare and load up for tax season. This has not been the case this year. Our dealers seem skeptical and very cautious about what is shaking out to be a very slow start to our normal tax season. 

“Usually by today, the sales percentage increases from the normal 45 percent (dealer cars only, not including fleet/lease) to a very high 65 percent,” Sanford went on to mention. “In  anticipation of a slow and smaller tax season this year, we have tried several new ideas to increase our public business here on Tuesday nights. I am launching a radio ad campaign on several local stations to advertise my public sale in hopes of bringing in more public buyers and sellers. My thoughts are to use the ads to educate the public about all of the benefits to buying and/or selling at an auction. 

“It’s a delicate balance to advertise on radio and to do it in a way as not to necessarily compete with our dealers,” Sanford acknowledged. “My thoughts are to go after the public seller that may have used a title pawn store to sell their car or an Internet service or even someone who might have just curb-stoned their automobile. This way, we can increase our business and stay away from competing with our dealers that are essentially our customers, too.”

Sanford delved deeper into some trends he found in the Atlanta area.

“The challenges now are clearly those same challenges that we have all been dealing with for the past two years — lack of inventory,” Sanford emphasized. “I read recently that three years ago the average age of an automobile in metro Atlanta was 7 years old, and now the average age of an automobile on the streets in metro Atlanta is 10.3 years old. Due to our economy, everyone seems to be repairing and keeping their automobiles rather than trading them in and buying a new vehicle. This presents the challenge for us as an auction but only makes us hungry to create our own opportunities. We will therefore work harder and smarter and dig deeper for new business.

“My managers and I have been going out and making sales calls to get new business, and it is working,” Sanford continued. “We refuse to go backwards and insist upon growth, and therefore, we make the commitment to do whatever it takes to make that happen. Whether it’s making a push to increase our public auction business or going after fleet and lease accounts, both local and national, we will thrive this year and remain one of Auction Broadcasting’s strongest auctions in the chain.”

Continuing elsewhere in the South, Sanford’s company colleague in Birmingham, Ala., shared his thoughts with Auto Remarketing.

“The Birmingham market is very strong,” ABC executive vice president Jim Phillips surmised. “The tax money has begun to flow thorough the dealer lots, and they have transitioned to the auctions for purchases. Percentages have increased at least 15 percent.”

Keeping Cars Rolling in Carolina

Sharing an independent’s perspective on the region was Tommy Rogers, general manager at Carolina Auto Auction in Anderson, S.C.

“I believe that the volume constraints we have experienced for all of 2011 will continue to be the order of the day for most, if not all of 2012,” Rogers conceded. “Other realities that come out of this are the fact that many of the cars that we are seeing continue to have higher mileage on them yet still command pretty good money.

“Carolina Auto Auction prides itself on the terrific loyalty that we enjoy with the majority of our dealers, and so our challenge is to try and help them secure the inventory that they need in order to be profitable enough to survive these tough times,” he continued. “Some of the things that we do are to offer incentives and guarantees to help defray some of the risk that our dealers face when buying inventory in an uncertain market.”

Rogers mentioned Carolina AA’s programs such as its buyback guarantee and its NAAA Silver Certified fleet units.

“Additionally, we thoroughly inspect each commercial unit that we offer here to include complete physical, frame and mechanical condition reviews so that the dealer knows what he is buying before he gets it home,” Rogers insisted.

“All eight of our lanes are now up on the Internet so a dealer can inspect and purchase any unit run at Carolina without even having to be here,” he highlighted. “These are just some of the things that we are doing to help our dealers navigate the difficult retail auto waters that they are in.

“We have always emphasized to our dealers that, ‘Our success as an auction depends on their success as a dealer,’” Rogers reiterated. “It has often been said that people don’t care how much you know until they know how much you care. It is our job to let them know that we care.”

American Auto Auction Group in Search of Vehicles

American Auto Auction Group president Gary Connors insisted that the company’s operations in the Southeast and Texas are looking for units just as much as dealers are.

“With volumes down for later model used cars, we are looking at a myriad of different sourcing solutions nationwide to help our dealers,” Connors stressed.

“As Bill McIver, our new chairman, recently shared, we have become a 24-hour a day, 7-day a week auction industry and we must look at all platforms to assist our clients,” Connors continued. “It is our experience that while later-model inventory continues to be scarce, volumes of older used cars, dealer trades, are doing well so far this year as we maintain and strengthen our commitment and loyalty to our relationships with our franchise dealers both in our auction lanes and through the private/mobile auction platform we are developing throughout the country. 

“While sourcing of later model used cars may continue to challenge both dealers and auctions, we are confidently optimistic that retail sales will continue to improve powered by pent up demand and increased availability of financing coupled with less restrictive lending criteria,” Connors went on to say.

Keeping Lanes Full in Florida

Douglas Rodriguez, general manager of BSC America’s Tallahassee Auto Auction, explained how his operation is looking to keep lots of units going down the lanes.

“Volumes are down some, however, sale percentages and pricing is up,” Rodriguez shared. “In Tallahassee, we have been keeping our lanes full by promoting larger consignment of inventory from not only our larger local franchise dealers, but reaching out to neighboring areas for dealer trades and then featuring them each month. 

“Our first quarter sales have been strong. Prices and sale percentages are up; dealers are just looking for more inventory,” he continued.

“Challenges that I see for dealers is the ability to find enough inventory. Volumes are down at auctions here in northern Florida, however, demand is high,” Rodriguez indicated. “We expect the spring market to continue to be strong here; I expect volumes to improve and demand to remain high.”

Rodriguez went on to say, “2012 will be an exciting year here at Tallahassee Auto Auction. We made huge infrastructure and technology improvement last year and are positioned to exceed last year’s record sales.”  

Sharing more about the Sunshine State, Jay Cadigan, Manheim’s market vice president for Florida, share his perspective on how things are shaping up for the spring.

“Overall, the Florida market continues to gain strength, with both in-lane and digital sales showing signs of continued growth. There is a good supply of cars, as dealers enjoy healthy new-car sales as well as used-car sales resulting in strong demand,” Cadigan emphasized.

“New-car sales are generating ample trades at auctions, with several sales showing record weeks from dealer consignment growth. Commercial inventory and pricing continue to stay solid with demand,” he continued. “With the upcoming tax return season, we see an even stronger demand for dealers accessing vehicles via OVE.com and Simulcast.

“As Manheim continues to invest in technology, we will enhance the auction experience for Florida dealers as well as dealers across the country,” Cadigan added.

He went on to share: “Our motorcycle, boat, RV and salvage sales are also solid, with Florida offering several of the largest Total Resource Auctions sales with great inventory. As dealers are challenged to keep up with demand this spring, the Manheim Florida market geography makes it easy for dealers to visit four or five sales conveniently, getting the inventory they need.”

WEST

Adjusting to Change in Kansas City

In Kansas City, Mo., Doug Doll, general manager at Kansas City Independent Auto Auction shared how his operation has boosted its workforce to respond to how the wholesale market has been for so long.

“We have expanded our sales force to reach more dealers that have the inventory to sell at the auction,” Doll indicated. “We are aggressively seeking new car trades and contacting the buyers that we know need that inventory. We have also expanded our pre-certifications to the dealers, and this is providing a much better inventory to the buying dealer.

“The first quarter has really started strong for us,” Doll highlighted. “We have seen an increase in inventory and in dealer attendance. Our staff has taken a very aggressive approach in how we market the auction and how we handle the dealers that enter the selling arena either physically or virtually.” 

 “I still predict a shortage of units this year,” he conceded. “However, I do see an increase in new car trades because the banking industry in our market is focusing more on direct lending and offering some financial solutions to the customers that want or need to purchase a new or used vehicle.”

Keeping a Positive Outlook

Moving on to the Southwest region of the U.S., auctions that find their home amongst the Rockies or down to the border in Texas, seem to have a positive outlook when it comes to this first quarter. 

And even with used-car inventory tight and wholesale prices high, Auto Remarketing talked to auction executives all across the board that agreed sales are up, and the first quarter of 2012 is the beginning of what is expected to be a “prosperous” year. 

One auction general manager even went so far as to say they are having their best sales in over a year. 

“Today (at the time of the interview) was our sale, and right now we are sitting at 68.7 percent of our sale, which is the highest we have been in about a year. We ran a little over 500 cars, and our average price car is $9,300. Our experience has been great this first quarter for sales,” said Joe Lavigne, general manager of Houston Auto Auction. 

Wayne Cook, president of Greater Tyler Auto Auction in West Tyler, Texas, attributed his auction’s high sales to an overall change in buyers’ and sellers’ attitudes: “We have been pretty blessed. The environment has been pretty good. Our sales have been up a bit since the beginning of last year. Of course this is all really early in the year to consider it a trend, but people’s attitudes seem better this year. The overall confidence of customers has grown. 

“We just had our sale last night (at the time of interview), and we had a great sale. People definitely started doing business and prices are good. We had some wholesalers and some new-car stores that were very happy,” he told Auto Remarketing. 

And Cook was not the only one that has seen a change in the overall confidence of auction customers. One Oklahoma dealer delved more into reasons why sales may be climbing a bit this winter and into the spring. 

“It is still early in the first quarter right now, but we have seen steady, stable sales. Buyer moods continue to be positive. It appeared in early February that many buy-here, pay-here dealerships had stocked up and were waiting for their tax season to begin before adding further inventory,” said Bruce Beam, general manager of Dealer’s Auto Auction of Oklahoma City. 

“Local new car dealerships used vehicles sales were up year over year in 2011, and the trend seems to have carried into 2012, making for a good market for front line merchandise stocked by these dealerships. We are cautiously optimistic that values will remain steady and even continue to creep up as supply remains short,” he further explained. 

Lastly, Lisa Franz, manager of Big Valley Auto Auction in Donna, Texas, said her sales are up by over 30 percent. 

“Our first quarter has been very strong with a notable increase in vehicles run this year over last, and our sales are up over 30 percent. Last year’s tax season seemed to come late and to end quickly, but this year has started with a bang and seems to be going strong,” Franz told Auto Remarketing. 

And Manheim executives agree as well — demand is up, as dealers fight to find the best units for the best price. 

“We continue to see strong demand for vehicles, especially the under $10K segment. Our exclusive partnership with the Chapman Automotive Group continues to show the value of our in-lane and online offerings such as OVE.com,” said Manheim market vice president for the Southwest Nick Boris. 

Working With “Our” Dealers 

When asked what they were doing to aid dealers in navigating this tough wholesale environment, auction executives cited everything from utilizing Auction Pipeline to implementing dealer-to-dealer trades. 

Beam said his Oklahoma auction utilizes Auction Pipeline to make the inventory search easier for dealers, as well as give them greater access to more selection. 

“DAA/OKC is assisting our dealers source vehicles via our association with fellow independent auctions on the auction Pipeline. It is virtually impossible for dealers to log onto and view vehicles on 40, 50, or more different websites. The Auction Pipeline allows a dealer to view vehicles from almost 60 auctions across the country with one simple login,” Beam told Auto Remarketing. 

“The dealer can also access Pipeline simulcast lanes at all of those auctions via that same single website and login. This greatly enhances their buying opportunities. Should there be a problem, all Auction Pipeline auctions cooperate and assist each other in resolving those issues for the buyer. We also continue to work with national, regional, and local suppliers to insure we are obtaining the highest number of vehicles for our customers to choose from each and every week,” he continued, stressing the convenience of the buying tool. 

And Lavigne noted that though they foster relationships with their dealers, as well as foster dealer-to-dealer trades in the lanes, it is difficult to actually “help” dealers with inventory. 

“We have avenues second to none. We have our own type of dealer to dealer trade that we do right here for the dealers. Dealers can actually go on our website and request fleet/lease that aren’t going to run for a couple weeks. We deal with our fleet/lease companies and our dealers quite closely,” he explained. 

“The biggest thing is there not an auction in the world that can help a dealer with inventory, and if there is an auction that tells you they can, they’re lying. Our biggest thing is we have a lot of dealers that give us their highline, medium and junk … predominantly because we have a very deep buyer base and our customer service,” Lavigne continued, noting that the way you treat your dealers has a direct correlation to buyer and seller loyalty. 

And Franz said that at Big Valley AA, they are renovating and ramping up online sales to pull more franchised dealers. 

“We are constantly trying new things here at Big Valley to help our customers find the vehicles that they need. We have just recently added a third lane to our auction, which has significantly increased the number of vehicles running; and we are adding online sales, both static and simultaneous, to entice more franchise dealers to bring their vehicles,” Franz explained. 

“The online sale will also make it easier for our smaller dealers to purchase vehicles at the auction, without having to leave their business. This is especially important for our smaller dealers during tax season,” she concluded. 

Will Wholesale Prices Continue to Rise?

One particular auction executive voiced what could be good news for dealers buying in the Southwest region. 

“Auctions and dealers should not expect huge "spring" market price increases even with supply being low,” said Beam. 

He thinks wholesale prices might have hit the roof already. 

“Prices have been at a high level for some time due to the supply issue and there isn’t a lot of upwards room left, especially on later model vehicles that begin to push new car prices and payment levels,” Beam surmised. 

“The challenge is for buyers and sellers to continue to meet at a level acceptable to both in order to keep the flow of vehicles steady and assist in the overall retail sales recovery. To summarize that thought, expectations should not be overly optimistic for spring price increases,” he concluded. 

Challenges and Opportunities in  the Lanes 

Auto Remarketing also asked auctions what challenges and opportunities they foresaw for this spring season. 

Franz noted that their biggest challenge is providing dealers with the cars they need for their lots, noting that franchised dealers holding on to their trade-ins longer is adding to an already tight supply of good quality used cars. 

“Our biggest challenge, both now and always, is getting the vehicles that our dealers need to the auction. Good quality, used cars are in short supply and heavy demand, and unfortunately, the franchise dealers in our area are holding on to their trade-ins longer. On the brighter side, our area has not been as affected as other parts of the country and car sales. Both new and used have remained strong,” she said, also explaining that Texas has perhaps not been hit as hard by inventory problems. 

Cook agreed, also explaining that “possession” is key for auctions this spring. 

“One of the challenges here for the spring is possession means a whole lot, and the auction that gets possession of them (units) is the guy who is going to get them sold. And you know it is a pretty competitive business because we get competition from nearby auctions and auctions that are 100 or so miles away,” he further stressed. 

“They are all trying to get the business. We have been fortunate that the people we do business with have been real loyal to us. And with that loyalty, we will try to do the best we can for them. I think that makes a difference in what we do,” Cook continued, noting that the way you treat your sellers may reflect on auctions’ inventory situations this spring season. 

Interestingly, Lavigne had a similar point to make and explained that customer service and making payroll have a direct connection. 

“The challenge is that a lot of auctions that have to understand that the only way we are going to meet payroll is we have to give what we say we are going to give, which is customer service. We have to be fair and equitable to the buyer and the seller when it comes to arbitration. And the biggest thing we have is inventory, and we can’t control that and fleet/lease companies can’t control that either,” he said. 

But Lavigne also touched on what is perhaps one of the most crucial issues for auctions to consider in an environment where prices are sky rocketing and quality used cars are scarce. 

“The biggest struggle is just giving them (dealers) the best bang for the buck. I have been in the automotive business my whole life, and one dealer told me ‘auctions have to get back to bringing the shizzle,’ you know, the good stuff,” Lavigne added.

Salt Lake City Spring

At Brasher’s Salt Lake City Auto Auction, assistant general manager Justin Booth is utilizing strategies similar to his ServNet and independent colleagues.

“We are trying to open more avenues of purchasing vehicles, as well as lengthening our stride to get more cars for dealers to choose from for their purchasing needs,” Booth told Auto Remarketing.

“This first quarter thus far has been a function of trying to match supply with demand,” he continued. “Tax money seems to have been slower than in years past to hit the retail market. As soon as the tax money hits I believe there will be more upward movement in price more so than in years past.”

If tax money is slow getting to the retail market, what could the rest of the year look like?

“This spring season I believe brings many opportunities for dealers and auctions alike,” Booth responded. “Spring is always a new fresh start to a new year, and this spring is no different.’

“Over the past couple of years, dealers have become leaner and turn their inventory more quickly in most cases,” he surmised. “I believe with the efficiency that dealers are running now opens more buying opportunities for dealers to be able to find cars and pay what is necessary to own the cars because they are not bogged down with aged inventory. The opportunity for the auctions is to be able to get the cars in front of a dealer base that is hungry to have retail cars for the end consumer.

“We believe that challenging times are great opportunities for growth and innovation, so we see further growth in the wholesale and retail markets going forward,” Booth went on to project.

Manheim’s View of the Pacific

Julie Picard is Manheim’s Market Vice President for the Pacific Region. Picard emphasized the various ways the company is assisting dealer to keep their used inventories stocked.

“The Pacific Market is helping our customers feel more comfortable during this tough wholesale environment by providing education and training for existing tools that support their business, such as Manheim.com and OVE.com, as well as through the introduction of new and more flexible ways to do business such as Manheim Simulcast,” she emphasized.

“We are educating our customers and helping them build confidence through quick ‘how to’ classes in our Dealer Cafés at each location,” Picard continued. “The challenge today is that retail is moving very slow in the Pacific market, and a recent snow and ice storm is not helping dealers. This challenge has presented a great opportunity for Manheim’s OVE.com product.

“We are meeting the dealers at their place of business — where they need us the most — to help them move units prior to shipping them to the auction,” she went on to say. “This gives them an additional buffer while the unit is still available for retail and at the same time offering it online for wholesale. The dealers love the OVE.com platform as it helps reduce the age of the units on their lots and allows them to free up their cash flow and buy fresh inventory.

“Obviously, lack of inventory is going to continue to be a challenge through the spring,” Picard added. “We are focused on making sure that every unit we have for offering is placed in the correct venue in an expedient manner for quick turnaround. We look forward to working closely with our buyers and sellers to make 2012 the best year possible.”

OEMS

Automaker Perspective on Spring Market

OEMs continue to push their remarketing buttons in order to supply used vehicles to the franchised dealers, as well as other buyers.

Mike Reid, national manager of remarketing at Toyota Financial Services, explained how the foreign automaker is striving to meet today’s wholesale challenges.

“We feel that dealers will once again experience an environment where there is limited used vehicle supply to meet demand. This is why it is going to be very important to ensure that TFS Remarketing works to maintain open lines of communication with dealers regarding available used-vehicle inventory,” Reid indicated.

And with Toyota so heavily involved in the certified space, Reid and his team are particularly focused on that segment going into the spring market.

“We are working with our certified groups to ensure that our franchised dealers are aware of our sales venues on a regular basis,” Reid highlighted. “Dealer Direct, which is the upstream platform for TFS Remarketing, has long been a source for quality used off lease vehicles for our franchised dealers. 

“However with the limited supply available, dealers will need to access alternative sources of inventory, such as our Online Weekend Event Sales, to satisfy their need for used vehicles,” he went on to say. “Our weekend sales start on Fridays at 8 p.m. EST and ends on Mondays at 2 p.m. EST. Each weekend there is a combined offering of more than 2,000 vehicles to choose from on Manheim’s OVE and ADESA DealerBlock.”

Switching over to the domestic side, the remarketing team at Ford is also keeping close watch on how the wholesale market behaves.

“With the improving economy and low interest rates helping to stimulate retail used vehicle demand, coupled with the substantial industry decline in lease termination volume, we expect some dealers may face challenges in acquiring adequate numbers of clean, late model used cars. This lack of supply should continue to support strong used vehicle values,” surmised Linda Silverstein, Ford’s manager of remarketing and rental operations.

Like Toyota, Ford is making concerted efforts to help franchised dealers acquire vehicles that can be certified.

“Ford Remarketing is committing to offering our franchise dealers early access to our late-model used vehicles through our Accelerate and QUIC Internet platforms, as well as our physical auction programs,” Silverstein noted.

“This combined with the Ford Automotive Remarketing Services program allow our dealers unparalleled access to both Ford and Ford Fleet customers owned used vehicles,” she continued. Additionally, with the recent investments Ford and Lincoln are making in our CPO programs, we expect 2012 to be a great year for CPO at our dealerships.”