RDN: Recovery Trends Soften in April
REDWOOD CITY, Calif. — Most of the metrics included in the
latest RDN Monthly Analytics Update indicated downward movement in April.
Analysts said April recovery volumes dropped 2 percentage
points versus the March level.
However, the April reading came in 7 percentage points
higher than the year-earlier mark.
RDN noticed more declining patterns in terms of recovery
orders.
April recovery orders dropped 15 percentage points below the
previous month, and the April order rate ticked 1 percentage point lower
year-over-year.
The RDN Recovery Market Trend Summary – a rolling comparison
of new- and used-vehicle buyer's FICO scores against the percentage volume of
recovered vehicles relative to the volume of vehicle sales financed – showed
the volume of recoveries relative to retail new- and used-vehicles financed
dipped during April versus the prior month.
Recovery volumes as a percentage of sales financed ended at
a 25 index level in April, which represents a 4 percentage point drop from the
prior month but flat versus the prior year.
Analysts mentioned FICO scores for new- and used-vehicles
buyers experienced a year-plus plunge from a high in January 2010 with a
recovery beginning in May 2011, and April represented a slight increase from
March.
RDN went on to mention that among the top 20 largest cities
with the highest recovery volumes, only two posted month-over-month gains. That
group included San Francisco (up 14 percent) and Memphis, Tenn. (up 1 percent).
In fact, a dozen cities had month-over-month drops of at
least 10 percent with Boston leading the way with an 18-percent decrease.
Finally, RDN pointed out that once again Texas led the
nation with the highest volume of involuntary recoveries at 12 percent of the
nation's total for April, a little less than 6,600 units. The company added
that Texas, Florida and California constituted 29 percent of all recoveries
nationwide for the month.
The Sunshine State also paced the country with the highest
volume of voluntary recoveries at a little less than 1,250 units recovered
during April.
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