- Topmarq Dealer Weekly
- Posts
- Volume 01, Edition 10
Good morning,
Welcome to Topmarq Dealer Weekly, your snapshot of industry news and happenings. Read on as we look at used car data, what’s up with luxury car shoppers, and how Volkswagen gives life to a once-dead SUV nameplate. And the troubles at Carvana continue.
What else can we cover? Send us a message with your suggestions and feedback.
Cheers!
Market at a Glance
Used retail numbers flatten
Auction data also reveals declining wholesale values
Vans and minivans stay hot, hatchbacks, too (yes, hatchbacks)
You can hit the snooze button for another week, as CarGuru’s latest used car transaction data show little movement. Specifically, the average used vehicle sold for $30,828, a $22 increase over the past seven days. That’s just a 0.44% jump in the last 30 days.
In the meantime, Cox’s Manheim Used Vehicle Value index showed a 1% decline in wholesale auction transactions in April (compared to March). That’s an overall drop of 6.4% since January.
Getting back to CarGuru’s numbers, let’s dive into body style info, which we haven’t covered in a while. Used vans have seen the most significant increase (45.39%) in year-over-year transaction values. Curiously, it’s followed by hatchbacks, which have jumped by 29.86%. Rounding out the top three is the minivan category and a 29.63% YoY boost. These stats stand in stark contrast to sales of used pickups, which have gained by only 9.83% in the past year.
BMW and Cadillac Score in Latest KBB Brand Watch
The bragging rights among most-shopped luxury brands shifted as KBB released its Q1 Brand Watch report. Notably, BMW regained the top spot, while GM executives undoubtedly cheered as Cadillac took the silver for the first time (and knocked Lexus back to third place).
The back and forth tussle between BMW and Lexus is old news, but Cadillac’s rise is significant. 18% of premium vehicle shoppers considered GM’s top-tier brand. Marketing for the upcoming Lyriq EV is adding a halo effect, and the brand reports increased interest in the XT5 and CT5.
In another surprise, Tesla dropped to fifth place (perhaps long waiting times are a turn-off) behind Mercedes.
KBB
Volkswagen Resurrects the Scout as an EV SUV and Pickup
The International Harvester Scout was a pioneering SUV that knocked heads with the Jeep CJ beginning in 1960. The Scout was traveling American roads and trails years before the Ford Bronco and Chevy Blazer. VW acquired the Scout brand when it bought Navistar International (formerly International Harvester) last year. The company hopes to bring the Scout name back to life in the form of an all-electric SUV and pickup. For now, this will be a U.S.-only venture that VW will shell out $1 billion to get started. There are not a lot of details at the moment, but if plans go as hoped for, the first Scout EV should reach consumers in 2026.
While VW’s American sales have improved thanks to the Atlas, Tiguan, and Taos SUVs, the company is more of a niche player here. Plus, the automaker is hurting due to war in Europe and pandemic problems in China (we covered this in a recent Dealer Weekly issue). Will a new brand under VW’s umbrella help things? Only time will tell.
Carvana Feels the Burn, Fires 12% of Staff
The pain at Carvana continues as the online auto dealer lets go of as many as 2,500 employees or 12% of its workforce. The move is necessary as the company has missed three consecutive earnings estimates, and its stock has been in free fall. Once trading at $377 a share, Carvana stock now goes for $35 a share (as of this writing), a stunning drop of more than 90% from its high of last August.
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