December 2009 Issue
OPENLANE Market Index

The OPENLANE Market Index represents pricing and dealer vehicle interest trends across all vehicle segments in our online marketplace.

The OPENLANE Price Index by Body Style measures pricing trends by vehicle segment. The OPENLANE Price Index by Model Year measures pricing trends by the age of the vehicle. It represents the most recent prices obtained at auction and provides for a high level trend of pricing in the just concluded month relative to monthly pricing since January 2008. Given the market volatility of 2008 in general, we have continued to show trends with January 2008 as a baseline. We intend to change the index to show a rolling 25 months sometime in the future.

The OPENLANE Vehicle Interest Indices by Body Style and Model Year trend are unique to OPENLANE and represent a leading indicator of what dealers are interested in acquiring for their used vehicle inventory. The index should help consignors and buyers get an early indicator for vehicle demand and provide high level insight on what they can expect in the marketplace over the next 30-60 days.
OPENLANE US Market Index

Chart 1: US Market Index - Prices level in early November with slight strength in Weeks 2-4

Since a slight softening of prices in late October (see the November newsletter for weekly price index in October), overall sales prices remained steady in the month of November while showing slight increases towards the end of the month. Truck prices showed the greatest strength in the last two weeks of November.



Chart 2: US Price Trend by Body Style - Truck prices showing particular strength in Weeks 2-4 in November

  • Car prices showed a slight dip in the beginning of November then reached its peak value in the last week ending with 2 percentage points above October.
  • Minivan prices declined in the first half of November then leveled off in the last half with overall month average coming in 8 percentage points below October.
  • SUV prices remained steady in the beginning of November then reached its peak value in the last week ending with higher levels than October.
  • Truck prices entered the month with a slight decline but showed an increase of 8 percentage points from Week 2 to Week 4. Despite the hike, overall November levels came in 1 percentage point below October.

Pricing by Model Year is a new feature of the OPENLANE Market Index. Comparisons between the 2009 and 2008 charts show the start contrast in prices in 2009 vs. 2008 - with aged vehicles showing a sustained high level of pricing through the year in 2009 vs. sustained declines in 2008 through the year.


Chart 3: 2008 US Price Trend by Model Year - Price weaken on 2-4 model year vehicles

  • Pricing for 2007 Models reached its peak value in September 2008 then began its downward trend ending the year 7 percentage points below the January 2008 baseline.
  • Pricing for 2006 Models stayed below the January 2008 baseline except for September 2008 and fell 22 percentage points below the baseline.
  • Pricing for 2005 Models and older stayed at or slightly above the baseline for the first few months of 2008 but started its downward trend thereafter ending the year with over 20 percentage points below the January 2008 baseline.

Chart 4: 2009 US Price Trend by Model Year - Aged vehicles (4-5 years) showing price declines


  • Pricing for 2008 Models attained higher levels than the January 2009 baseline in November for the first time all year.
  • Pricing for 2007 Models have stayed above the January baseline all year and gained 2 percentage points in November.
  • Pricing for 2005 Models showed a sharp fall in November.
  • Pricing for 2004 Models declined moderately from the previous month but continued to maintain levels higher than the January 2009 baseline.

Chart 5: US Dealer Interest by Body Style - Softening in all segments except SUVs


  • Dealer interest in Cars remained flat last month but exceeded November 2008 levels by 4 percentage points.
  • Dealer interest in Minivans showed a deep decline last month but continued to exceed November 2008 levels by 24 percentage points.
  • SUVs experienced an increase in dealer interest last month and slightly above November 2008 levels.
  • Dealer interest in Trucks dropped 3 percentage points last month and fell 27 percentage points below November 2008 levels.

Chart 6: 2008 US Dealer Interest Trend by Model Year - Interest declined on all model years except for 2 year old vehicles


  • Dealer Interest in 2006 Models began its upward trend in June 2008 and reached its peak value in December 2008.
  • Dealer Interest in 2005 Models and older experienced a downward trend towards the fourth quarter of 2008.

Chart 7: 2009 US Dealer Interest Trend by Model Year - Interest declining across all model years except for 2 year old


  • Dealer Interest in 2007 Models continued its upward trend that began in June 2009 reaching its peak value last month with 95 percentage points above the January 2009 baseline.
  • Dealer Interest in all Models 2006 and older showed downward trend in November.


OPENLANE Canadian Market Index

Chart 8: Canadian Market Index - Prices hold steady in November

Overall sales price entered the month with a slight decline but showed an increase in Week 2 and remained steady towards month-end.



Chart 9: Canadian Price Trend by Body Style - Prices across segments remain steady


  • Car pricing showed a small drop in the first week of November then continued through the month with higher levels than October.
  • The Minivan segment fell 8 percentage points in the first week of November then reached its peak value in the third week.
  • SUV pricing also declined in the first week of November but ended with higher levels than October.
  • Truck pricing showed the most volatility in November with declines in the first and third week of the month.

 

Chart 10: Canadian Dealer Interest Trend by Body Style - Interest in Cars remain strong


  • The Car segment had a slight increase in dealer interest last month and exceeded November 2008 levels by 62 percentage points.
  • Dealer interest in Minivans increased 3 percentage points last month but fell 8 percentage points below November 2008 levels.
  • SUVs had a slight decrease in dealer interest last month and fell 4 percentage points below November 2008 levels.
  • Dealer interest in Trucks remained level last month and fell 72 percentage points below November 2008 levels.

Contact Us

OPENLANE
Phone: 866-969-0321   |   Fax: 480-393-2960   |   Email Us

OPENLANE Canada
Phone: 866-966-5263   |   Fax: 416-861-9864   |   Email Us

For questions or comments about this newsletter, send an email to news@openlane.com.






Programs subject to change without notice. All rights reserved. © 2009 OPENLANE, Inc. OPENLANE and the OPENLANE logo are trademarks or registered trademarks of OPENLANE, Inc. in the United States and other countries, and may not be reproduced or used without written permission. The names of other companies, products and services may be the property of their respective owners. Contact 866-969-0321 for questions.