Tag Archives: j.d power

Honda, Lexus at Top of ALG Residual Value Awards

Numerous variables, of course, affect the actual residual value of a vehicle over a multi-year lease term, including the former Trump administrations’ inexplicable failure to address the corona virus pandemic, which resulted unnecessary deaths and as well as factory shut downs. Other instances include mileage, quality/reliability, options and feature sets, weather and the macro-economic environment. Continue reading

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US September Auto Sales Projected Down -25%

“The mismatch between strong consumer demand and constrained inventory is leading to higher vehicle prices.  In September 2021, average transaction prices are expected reach an all-time high of $42,802, the fourth consecutive month over $40,000,” said Thomas King, president of the data and analytics division at J.D. Power. This begs the question, AutoInformed opines, are automakers about to face another revenue threatening affordability crisis? Continue reading

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US New Vehicle Sales in May Forecast as Record Setting. Global Sales are Another Matter Entirely

Total new-vehicle sales for May 2021, including retail and non-retail transactions, are projected to reach 1,555,600, a 39.6% increase from May 2020 and a 1.9% decrease from May 2019. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 16.7 million units, up 4.7 million units from 2020 but down 0.7 million units from 2019. The overall sales results for manufacturers will be mixed. Some are experiencing greater production problems because of semiconductor shortage. This will hurt, perhaps materially in the financial sense, various manufacturers monthly sales and profit performance for May and the months to come. Continue reading

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April US Auto Sales About to be Highest Ever. Blip or Trend?

Total new-vehicle sales for April 2021, including retail and non-retail transactions, are forecast to reach 1,479,800 units, a 107.1% increase from April 2020 and a 7.8% increase from April 2019 when adjusted for selling days. Reporting the same numbers without controlling for the number of selling days translates to a 107.1% increase from April 2020 and a 12.1% increase from April 2019. The seasonally adjusted annualized rate (SAAR) for total new-vehicle sales is expected to be 18.1 million units, up 9.4 million units from 2020 and up 1.7 million units from 2019. Continue reading

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US March Vehicle Sales Rebound. Beating the COVID Reaper?

March 2021 sales were likely increased by delayed sales caused by harsh February winter weather. Then there’s the increase from stimulus checks following the passage of the Biden administration’s COVID-19 relief bill, which no Republican voted for. Continue reading

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COVID Changes – Digital Auto Lending Infected

“The pandemic has severely disrupted dealer-lender communication, with many dealers reporting that lenders were delayed or not available when they needed them, or not able to assist in a timely manner,” said Patrick Roosenberg, director of automotive finance intelligence at J.D. Power. This of course begs the question of there’s another solution – such as borrowers dealing directly digitally with lenders, which will eliminate a lucrative profit center at dealerships. Continue reading

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J.D. Power Completes ALG Acquisition

The money involved right now is breathtaking. Determining an accurate residual value –  the value of a vehicle at the end of a lease term is the underpinning of auto leasing because it allows dealers and manufacturers to set the most competitive lease terms today, while protecting their profits tomorrow. About one-third of new vehicles sold each year are leased, typically for a three-year term. At any point in time, the value of vehicles in outstanding lease portfolios is estimated at $500 billion by Power. Continue reading

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Covid – Drastic Changes to Commuting Have Slight Effect on Feelings about EVs and Self-Driving Technologies?

While the ongoing Covid plague has drastically changed American lives, what’s not new is that Inexperience and Lack of Knowledge Remain Barriers for Acceptance of EVs and Self-Driving Technologies. Nonetheless, automakers are investing heavily in electrification and self-driving technology despite an absence of substantive consumer interest in either. Continue reading

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