GM Inside News Forum banner

1 - 12 of 12 Posts

·
Premium Member
Joined
·
8,659 Posts
Discussion Starter · #1 ·
Bloomberg.com
May 3, 2021

Screenshot_2021-05-03 Car Rental - Save on Rental Cars Trucks Hertz Rent-A-Car.png


The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction.

This is uncharted territory for the likes of Hertz Global Holdings Inc. and Enterprise Holdings Inc., which have made their profits by purchasing new vehicles cheaply in bulk, renting them out for as much as a year and selling them at auction. In the past, they have bought some used cars to shore up an occasional unforeseen burst in demand, but rarely for the mainstays of their fleets.

“You would never go into auction to buy routine sedans and SUVs,” said Maryann Keller, an independent consultant who used to be on the board of Dollar Thrifty Automotive Group, which is now part of Hertz. “These are special circumstances. There is a shortage of cars.”

The demand is sending used-car costs soaring. The Manheim Index, which measures prices at wholesale auctions, shows they’re 52% higher than they were a year ago.

“We expect to see records in the Manheim Index through June before demand softens enough to align with supply trends,” said Jonathan Smoke, chief economist of Cox Automotive, which owns Manheim, the nation’s largest used-car auction. “We expect retail prices to continue to rise into the summer, as retail trends tend to follow wholesale trends with a six-week lag.”









.
 

·
Premium Member
Joined
·
8,659 Posts
Discussion Starter · #2 ·
“We expect retail prices to continue to rise into the summer, as retail trends tend to follow wholesale trends with a six-week lag.”

You know that car that's been sitting in your garage/driveway for the past six years...put a For Sale sign on it and watch what happens.









.
 

·
Registered
Joined
·
6,670 Posts
This whole situation really sucks for everybody - buyers and sellers.
 

·
Registered
Current ride: 2015 Sonic sedan 1.8L/5sp
Joined
·
2,244 Posts
Does this mean my 2015 Sonic is worth more? Maybe I should trade it in...hmmm...I'd like to buy Chevy again but not much there of interest to me with cancellation of Sonic/Cruze. Maybe a Trailblazer? I'm not going to be able to swing a CT4 alas. Maybe used in a few years.
 
  • Like
Reactions: BlackGTP

·
Registered
2020 Chevrolet Equinox LT AWD
Joined
·
12,353 Posts
“We expect retail prices to continue to rise into the summer, as retail trends tend to follow wholesale trends with a six-week lag.”

You know that car that's been sitting in your garage/driveway for the past six years...put a For Sale sign on it and watch what happens.









.
I guess if it's just been sitting there, it's unneeded basically so all is well I guess. But I'd hate to be in the situation of then trying to replace it with new the way the lots look and things are going right now :(.
 

·
Registered
Joined
·
4,581 Posts
I know where they can get a gently loved low mileage '19 Enclave and pretty much unused '19 Mazda 6 from.
 

·
Registered
Joined
·
2,768 Posts
True, Hopefully, there are sensible people somewhere enough to move production back to North America, including medicines productoon.
Yes, because only America is experiencing the Chip Shortage?

What is America going to do any different? It is not about Workers Pay, it is not about Unions, it is not about Over Paid CEO's. If anything it is about America/China Tensions, caused Chip/Possible Chip shortage.

Many Assembly Lines are producing the Product, minus part # 111-11-1111-1 until it is available. (kinda like Boeing building 737 Max while they were grounded, but the Vehicle will be Safe for the Roadways when completed).

So a $50,000 vehicle sits and waits for a $10.00 Chip. All of this while the Chip Producer is making $10.00 Chips so Panasonic can build $1500.00 TV's and $500.00 Laptops. Toshiba, Sony, Dell, Apple, Samsung, All the Players are lining up for a Chip.
 

·
Registered
Joined
·
7,352 Posts
Thank God I got my truck last year. My local Ford dealer has two F150's and ZERO F250's or F350's, a big problem.
 
1 - 12 of 12 Posts
Top