2023 Q2 Updates

4 min to readIndustry Updates
Stay up to date with industry news and our recommendation as your partner in fleet.
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Registration Renewals

In addition to the current renewal status being visible in ePlan, we have added new renewal statuses to better define the movement of the renewal process:

Be sure to take advantage of the License & Title reporting available in ePlan to track the status of all your registration renewals in process.

Maintenance and Repair

Vehicle maintenance and repair prices continue rising - and at a rate much higher than overall inflation.

Motor vehicle repair prices have increased a staggering 23% over the last year, an inflation rate nearly four times higher than overall price increases, according to the U.S. Bureau of Labor Statistics.

In order to attract labor, there’s been an increase in hourly wages by roughly $5 over the past 2 years. This, combined with the shortage of parts and overall increase in technology in vehicles, has made costs for auto shops higher than ever. "It's a perfect storm because everything is coming together at once." says Tara Topel, the owner of Topel's Service Center, in Lake Mills, Wisconsin.

Our account management team is prioritizing reviews of your current maintenance authorization limits over the next few months. We highly encourage you to consider increasing your current maintenance authorization limits to ensure that your drivers don’t encounter added downtime while getting routine maintenance or simple repairs completed.

Vehicle ordering

New model ordering

Used Vehicle Remarketing

Per a recent article from Cox Automotive, wholesale used vehicle prices saw an increase in the first half of March.

Wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) increased 1.8% from February in the first 15 days of March. The midmonth Manheim Used Vehicle Value Index rose to 238.6, which was down 2.1% from the full month of March 2022. The seasonal adjustment minimized the gains. The non-adjusted price change in the first half of March was an increase of 3.8% compared to February, while the unadjusted price was down 2.6% year over year.

Over the first 15 days of March, MMR Retention, the average difference in price relative to current MMR, averaged 100.5%, indicating that valuation models are below market prices. The average daily sales conversion rate of 68.3% in the first half of March increased relative to February’s daily average of 63.8% and was above the March 2019 daily average of 65.3%.

Seven of the eight major market segments saw seasonally adjusted prices that were again lower year over year in the first half of March. Pickups had a 0.9% increase, while only midsize and compact cars lost less compared to the overall industry in seasonally adjusted year-over-year changes. The remaining segments lost between 2.4% and 7.7%, with luxury cars faring the worst. Seven of eight major segments saw price increases compared to February, with gains ranging from 0.1% to 2.4%. Sports cars were the lone exception, with a 2.4% decline from February.

"Vehicle Prices See Increase in First Half of March." Cox Automotive, 17 Mar. 2023, www.coxautoinc.com/market-insights/mid-march-2023-muvvi/. Accessed 20 Apr. 2023.

Registration Renewals

Did you know there are more than 30 US states that require drivers to obtain an inspection prior to renewal? The number one reason we see delayed renewals (across all clients) is because the completed inspection is either missing or unconfirmed from the driver.

Below are a few suggestions for decreasing renewal cycle time:

Reach out to your Account Manager to schedule a review of your fleet’s on-time renewal performance and identify other opportunities to decrease renewal cycle time.

Published at April 2, 2023
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April 2, 2023
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