It’s essential that traditional and independent dealers support their used inventory marketing in 2018. Let’s review some key used car market facts to help understand why this segment is so important this year! (All data via NADA)

• NADA forecasts used car volume will top 40 million units in 2018.
• Franchised new car dealers are expected to retail 15.3 million used vehicles in 2018, up from 15.1 in 2017.
• The heaviest growth is expected to come from 1-5-year-old vehicles, representing 11.7 million sales in 2018, up 9% from 10.8 million in 2017.
• Vehicles coming off leases are the most significant contributor to that surge.
• Off-lease returns were at 3.6 million in 2017, up 8.1% from 2016.
• In 2018, Off-lease returns will rise another 7.4% to 3.9 million vehicles.

2018 may create challenges for both independent dealers vs. franchised dealers. The off-lease vehicle return activity has the ability to impact new car prices, incentives, and older vehicle prices.

Independent dealers typically have inventories of vehicles aged 5-8 years old. These vehicles are getting more challenging to acquire due to their lower numbers. Used car dealers who aren’t marketing their vehicles efficiently may run the risk of stocking higher priced, older vehicles that are harder to sell.

Used vehicle values may continue to fall in 2018 as more off-lease SUV, and full-sized pickup trucks hit the market. Dealers need to leverage the efficient and effective marketing solutions offered by the MPOP®!