buying As used-car prices climb, even wrecked cars have gotten expensive
Some used vehicles now costing more than their original sticker price
Some used vehicles now costing more than their original sticker price originally appeared on Autoblog on Tue, 22 Jun 2021 17:39:00 EDT. Please see our terms for use of feeds.
Thinkare expensive? Take a look at totaled cars.
that specializes in off wrecked deem too damaged to justify the cost of . The companies and other sellers — which include banks, charities and, increasingly, used-car — get what’s recovered in the auction, but they also pay a fee to Copart that in many cases increases proportionally with the value of a vehicle. Late Wednesday, Copart reported record revenue and that handily beat analysts’ estimates, thanks in no small part to what the company said were the highest-ever selling prices for the vehicles auctioned on its platforms.
A small victory: Used-car prices slip from dizzy heights
A small victory: Used-car prices slip from dizzy heights (Associated Press) Your browser does not support this video Until the pandemic flattened the economy in March 2020 and shrank the supply of both new and used vehicles, average wholesale used vehicle prices paid by dealers rose only a little every year. Average prices briefly fell in April last year, only to soar over 60% to a peak in May this year, according to data kept by Manheim, a group of auction houses where dealers buy vehicles. Any decline, however slight, would represent welcome relief for buyers.
Global average selling prices climbed 20.7% in the most recent quarter relative to the same period in 2020. That compares with a 48% spike in the three months ended in April and a 35% surge in the quarter before that. These numbers don’t simply reflect easy comparisons from the year earlier. Prices have gone up at Copart auctions in every quarter except one since the start of fiscal 2018; the one slip was the three-month stretch that covered some of the worst of the pandemic lockdowns from February through April 2020.
There are a few reasons junked-car prices are skyrocketing. For one thing, “junked” may be a bit of a misnomer in some cases. Traditional buyers of cars processed through Copart have included scrap yards and companies such as LKQ Corp., which dismantles older vehicles and reconditions their parts to be sold in collision-repair shops. But as vehicles have gotten more technologically sophisticated, with sensors crammed into every possible nook and cranny, even fender benders are increasingly expensive to fix. This gives insurers a greater economic incentive to declare a banged-up vehicle totaled and sell it through Copart rather than try to repair it. But that also means a growing number of junked vehicles are relatively new and can be made workable again. “If you visited some of our yards, you would be astonished by some of the high-valueand European vehicles that you would see on the lots that at least on their surface look perfectly good and perfectly functional — and in many cases are,” President Jeff Liaw said on a call Thursday to discuss Copart’s results.
2011 Mercedes-Benz E-Class: What You Need to Know
The 2011 Mercedes-Benz E-Class has perfect safety scores and an above-average reliability rating. Add to that its range of powerful engines, agile handling, and high-end interior, and it’s easy to see why the E-Class ranks near the top of the luxury midsize class. The 2011 Mercedes-Benz E-Class is ranked: #1 in 2011 Luxury Convertibles #2 in 2011 Luxury Midsize Cars #12 in Used Luxury Midsize Cars under $20K Is the 2011 Mercedes-Benz E-Class a Good Used Car? The 2011 Mercedes-Benz E-Class is an excellent luxury midsize car.
These cars are more valuable and attract a much bigger pool of potential buyers — especially in emerging economies, where safety regulations can be less strict and there’s a burgeoning appetite for patched-up cars from the U.S. and Europe. Copart has been particularly adept and early at targeting this international market, which is the biggest driver of growing demand. As of 2019, about three-quarters of the vehicles sold on Copart’s U.S. website received at least one bid from an international purchaser. But the current tight market for used vehicles in the U.S. may also inspire more domestic car shoppers to consider a salvaged vehicle with some minor wear and tear instead. Meanwhile, supply-chain logjams in the automotive industry are causing parts shortages, which boosts demand for recycled components. Higher metal prices also increase the amount scrapyards are willing to pay for wrecked cars. The more interested bidders, the higher the price.
2014 Honda Civic: What You Need to Know
The 2014 Honda Civic has solid reliability and safety ratings, a premium interior, refined handling, and zippy engines. As a result, it ranks near the top of the compact car class. The 2014 Honda Civic is ranked: #1 in Used Small Cars $12K to $14K #2 in Used Compact Cars $10K to $15K #3 in 2014 Affordable Small Cars #3 in 2014 Compact Cars Is the 2014 Honda Civic a Good Used Car? Available in sedan and coupe body styles, the 2014 Honda Civic is an excellent used compact car. Its interior is comfortable, and it has an upscale look and feel. The Civic also rides smoothly on rough pavement and remains stable around turns.
Used-car prices are rising sharply, too: They were up 19% in August relative to a year earlier,the seasonally adjusted Manheim U.S. Used Vehicle Value Index. In theory, that could change the economic calculus for insurers and convince them to repair, rather than total, a vehicle. But it’s all relative, and as much as used-car prices have climbed, they haven’t caught up with the returns from salvaged vehicle auctions — at least not yet. The rise in used-car prices also feeds into what Copart can get for a car at auction; salvage prices are typically as a percentage of the vehicle’s undamaged market value.
These trends have made Copart something of a Wall Street darling; it was the best-performing industrial stock on the S&P 500 in 2019. When I lastthat year, I commented that its valuation (which was higher than that of Apple Inc.) was looking a little heady after such a stellar run. Well, Copart’s market value has nearly doubled and its valuation has moved even higher, to about 24 times forward earnings before interest, taxes, and amortization as of midday Thursday. That’s still higher than Apple and roughly tied with Microsoft Corp. It turns out there’s a lot of money in wrecked cars.
originally appeared on on Mon, 13 Sep 2021 12:42:00 EDT. Please see our terms for use of feeds.
2022 Jeep Wagoneer and Grand Wagoneer could get more expensive .
2022 Jeep Wagoneer and Grand Wagoneer could get more expensive originally appeared on Autoblog on Fri, 10 Sep 2021 14:52:00 EDT. Please see our terms for use of feeds.