CarProof Finds 37% of Canadian Used Vehicles Have a Lien

LONDON, Ontario - 

In news relevant to both dealers and consumers, CarProof data reveals that more than one-third of the vehicles have a lien, or security for debt owing.

The company shared, interestingly, this is a fact that most Canadians are "largely unaware of."

Specifically, CarProof's study of vehicle history reports showed that 37 percent of vehicles in Canada have a current lien on them.

Liens present an interesting issue for both dealers and consumers as they represent the right of a lender to keep possession of the vehicle belonging to another person until a debt owed by that person is paid in full.

After discovering how common car liens are, CarProof conducted a consumer survey to measure how aware Canadian consumers really are when it comes to this issue.

Survey results shows 63 percent of respondents "underestimated the presence of liens."

That said, most respondents - 88 percent - said they do see the value of a lien search before buying a used vehicle.

Many vehicle history reports include this information, such as CarProof and Carfax.

In response to the study, CarProof put together a video further detailing what a lien is and how to look for one during the vehicle shopping process.

Video can be found here:  https://www.carproof.com/car-advice/buying/what-is-a-lien

Wholesale Prices Push Down in May

Though wholesale prices remain elevated, rates were on the way down in the lanes this past month.

In May, the Manheim Canada Used Vehicle Value Index was down four points from April to sit at 98.9.

Though rates are falling from early-spring highs, this number remains up 12 points year-over-year.

That said, Don Wallace, general manager at Manheim Toronto, told Auto Remarketing Canada, "The industry is seeing softening to the hyper-inflated used vehicle prices of 2013.

Don Wallace, Manheim Toronto

"The first quarter of 2014 has shown more traditional levels. Retail new volume generating the majority of the auction business through dealer trades is noticeably, as well," Wallace said. "Prices have also been inflated due to U.S. buyers, or exports to U.S. by Canadian sellers, which have declined in the past quarter, as well."

All vehicle categories Manheim Canada tracks decreased month-over-month.

When asked what is pushing the index down in 2014, Wallace said, "Several manufacturers have experienced shortages in new vehicle deliveries for the 2014 model year, but productions has now caught up to demand, influencing late model demand at auctions."

Compacts led the way in May for price declines, with a 7.8 point decrease on the index.

This trend is primarily due to prices at the pump.

"Compacts have steadily declined in the past year as consumers have adapted to current pump prices. This has become the norm every time we see spikes in the price of gas after initial quick run ups," Wallace explained.

Vans followed with a decrease of 5.1 points; mid-size cars fell by 4.9 points; luxury cars dropped by 3.6 points; and pickups dropped by 2.4 points.

The smallest price drops seen this month was in the SUV segment. These vehicles saw a drop of 1.4 points on the index.

"Pickups are still in very short supply. SUVs are tied to gas again where the buyers have been acclimatized to current price at the pump," Wallace said.

Looking ahead to the rest of the year, Wallace said, "Time will tell," but he predicts incentive movement might serve to push prices down further.

"I suspect more micro-economic factors affecting new vehicles sales will drive OEM's to adjust incentives to maintain sales volume, which will have a bigger effect on used vehicle pricing than economic conditions," he said. "If one or more of the top sellers' sales decline through the summer months then we can expect aggressive incentive spending to recapture business. Heavy incentive spending, which has been on the decline, would adversely affect used car prices. Seasonal prices are also expected to normalize to traditional adjustments."

http://www.redlineautosales.ca/wholesale-prices-push-down-in-may.htm

 

Carfax to Offer Canadian Dealers Subscription Rates

Carfax is redisiging their vehicle history reports for Canadian dealers.

Carfax is ramping up their presence in Canada, with a redesigned vehicle history report for Canadian dealers as well as a subscription-based offering.

Now, Canadian dealers can enjoy similar benefits to those U.S. dealers have been enjoying since 2011, through the Carfax Advantage Dealer Program.

This news comes after the company hired Jon Arnett as head of Canadian operations last October.

"This is really just some updates to our service in Canada to better meet the needs of Canadian dealers and consumers," Larry Gamache, communications director at Carfax, told Auto Remarketing Canada. "I think Canadian dealers are going to find some new tools to make our products even more valuable to them as they are trying to sell cars in the country."

read more here: www.redlineautosales.ca/carfax-offer-canadian-dealers-subscritption-rates.htm