The Auction Market Problem -II
Insights from our sources on the auction market- Week#15 (founding members only)
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“Pickups have run into two hurdles — interest rates and high prices are having a negative impact directly on affordability and the slowdown in construction is likely impacting demand. We don't feel there is much pent-up demand remaining in fleet. Additional growth [in] the full-size pickup segment will be challenging over the near term. Buyers appear to want pickup functionality but at lower prices.”- Charlie Chesbrough, senior economist at Cox Automotive.
Sales of large pickups fell 4% from January through March as the overall new light-vehicle market grew 5.6%. The Ram 1500 pickup fell 15%, and Ford Motor Co.'s F-Series line dropped 10%. General Motors' light-duty full-size pickups declined 1.2%, though higher sales of heavy-duty models resulted in overall gains for both the Chevrolet Silverado and GMC Sierra.
Automakers — particularly the Detroit 3 — rely on full-size pickups for profits and have been adding content and features in recent years to high-end trim levels, some of which start above $70,000.
Last week in our The Auction Market Problem -I, we shared our discussions with our sources on the supply side of the market - the auction market.
This week, we will focus on the auction market economics, auction profitability, an interview with a Nissan dealer, and what is going on with ALLY 0.00%↑?