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The impact of seasonal price patterns on fleet returns
A historical look at seasonal price patterns
Automotive industry experts historically operated with the understanding that used-vehicle secondary market, or auction, prices were influenced by seasonal variables. However, many legacy assumptions are no longer accurate in today’s market.
What are the main drivers of seasonal demand?
Although used-vehicle demand is driven by many industry and economic variables, seasonal demand is attributed to alimited number of factors:
Tax refund season
Most used vehicle buyers today require financing with down payments. Income tax refunds are a common source of these down payments.
Tax refund season
Weather
Weather trends can also impact demand for individual vehicle segments, such as pickup trucks or cargo vans used in building and construction industries.
Weather
Holidays
Periods leading up to major holidays can also adversely impact auction activity as dealers manage retail inventory levels accordingly.