ADT Automotive Releases 1999 Used Car Market Report
17 February 1999
ADT Automotive Sees Continued Strength in Used Car Market; Company Releases 1999 Used Car Market Report
NASHVILLE, Tenn.--Feb. 17, 1999--The sale of used vehicles remained strong in 1998, fueled by heavy demand for late-model off-lease vehicles that continued to exceed expectations and contributed to one of the strongest used car years to date, according to ADT Automotive's 1999 Used Car Market Report.The Report is the fourth edition of the annual comprehensive study of new and used vehicle sales and auction activities conducted by ADT Automotive.
"The used vehicle market in 1998 was the strongest year ever since we began measuring it in 1985," said Tony Moorby, president and chief executive officer of ADT Automotive. "When we released last year's Report we anticipated an aggressive auction year. That proved to be a correct prediction, and early indications are that 1999 is off to an even better start."
According to the Report, more than 40 million used vehicles were sold in 1998. Projections are that the used vehicle market has established a solid plateau of 40 million vehicles per year, reflecting a stability similar to the 15 million in annual sales for new vehicles.
QUICK FACTS:
SALES FIGURES
Used vehicle sales represented 72 percent of all vehicle sales in 1998. More than 40 million used vehicles were sold for $336 billion, representing 52 percent of the total dollar value of the vehicle market.
NO OFF-LEASE GLUT
Sales of off-lease vehicles remained strong in 1998 despite high volumes, suggesting that demand for the vehicles continues to exceed expectations. Between 1.8 and 1.9 million off-lease vehicles will be remarketed through auctions for the foreseeable future. These estimates indicate that an additional 222,000 units will be remarketed through auctions in 1999 versus 1998.
EXPECTATIONS OF QUALITY
Improvements in quality of new cars have led to expectations of high quality by consumers considering a used vehicle as well. Consumers considering a used vehicle rate quality as high in importance as those considering a new vehicle.
CERTIFICATION
Certified used vehicles continue to find acceptance among consumers who are willing to pay more for a certified car, but a growing concern is the lack of consistency among certification programs and the need to market more aggressively.
NEW HIGH FOR INDEX
ADT Automotive's Used Car Market Index broke 500 for the first time, making 1998 the best year since ADT began tracking market performance in 1985. Overall, the index was up at least 10 percent over 1997 for every month in 1998. The Index gauges prices and volumes at auction.
SEGMENTS
Sport Utility Vehicles outsold minivans at ADT Automotive auctions for the first time in 1998, reflecting the popularity of these vehicles at retail. Standard-sized cars had a strong year at auctions and were responsible for much of the rebound in prices from the slight downturn in 1997.
Based in Nashville, Tenn., ADT Automotive, Inc., is a vehicle redistribution company with 28 U.S. wholesale auto auctions which auctioned 2.1 million vehicles in 1998. The company's services include managed remarketing; vehicle transportation; online sales, vehicle pricing and inventory information; and state-of-the-art reconditioning. Its website is at www.adtauto.com. ADT Automotive is a Tyco International Ltd., company, a diversified manufacturing and service conglomerate with annual revenues of more than $12 billion.