KBB: Luxury Units Present Great Opportunity for Dealers
In what goes against recent months, May showed weaker interest for used hybrids in light of more moderate fuel costs, while some used luxury segments have started to attract more attention from shoppers, according to Kelley Blue Book.
The company suggests that dealers would be wise to push their luxury units in coming months in light of burgeoning interest around these vehicles.
In fact, luxury SUVs were up 7.7 percent in used-car shopping activity from April, leading all segments in terms of monthly growth. Luxury crossovers were second on the list (up 3 percent) and luxury cars were third (up 1.8 percent).
“As gas prices start to decline, used intenders are now re-considering luxury vehicles,” Arthur Henry, KBB’s market intelligence manager and market analyst, said in the Hot Car Report. “Dealers should look forward to off-loading their luxury inventory in the next couple of months as interest in these vehicles continue to rise.”
Conversely, three hybrid segments were among the bottom five overall for activity growth. Hybrid SUV activity was down 5.3 percent, hybrid car interest dropped 3 percent and interest in hybrid crossovers fell 2.9 percent.
“Used-car shopper interest in hybrid vehicles declined in May, as a result of stabilizing gas prices and low used-car volumes,” Henry suggested.
Breaking it down by individual models, the 2009 Volkswagen Tiguan showed the most month-over-month growth in May (up 39.9 percent), followed by the 2009 Chevrolet Silverado 2500 HD Crew Cab (up 33.7 percent) and the 2008 Land Rover Range Rover Sport (up 32.8 percent).
Meanwhile, the 2006 Dodge Ram 2500 Mega Cab showed the most dramatic decline (down 24.1 percent), with the 2008 Nissan Xterra (down 23.6 percent) experiencing the second-highest drop. Behind the Xterra was the 2009 Chevrolet Equinox (down 21.6 percent).
Used-Vehicle Values Looking at used-vehicle values, the more fuel-efficient segments are poised for a slowdown, according to KBB’s manager of vehicle valuation Alec Gutierrez, but they managed to stay above the curve in May.
Subcompact car values were up 1.2 percent in May, with compact cars up 1.4 percent and hybrid cars up 1.7 percent. Meanwhile, used values in the overall industry dipped 0.6 percent. The last time that overall used values were down was January, KBB noted.
Despite being above the industry average, KBB doesn’t believe this value surge will last for these fuel-efficient segments.
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Likewise, the BMW 1 Series and Volvo C70 were major decliners on the near-luxury side. Meanwhile, full-size pickups showed the greatest uptick in residuals (up 4.1 percentage points) and midsize pickups were next (up 3.7 percentage points),
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If you have not seen the sun in days, the new Volvo C70 would be a very good medium to do so. The new Volvo C70 is one of the last of the old-style vehicles manufactured and crafted by Volvo . It now comes as a sexy convertible that made its debut at Frankfurt. It comes with a clever, three-piece retractable hard top and not the traditional soft top. It is also powered with the very same 218 hp, 2.5 liter, five-cylinder turbo that has been used in the S40 sedans and the V50 wagons. These mentioned models also share the same platform as the Volvo C70.
In comparison with the S40 sedans and the V50 wagons, the Volvo C70 also shares the several body parts with them that has a list that includes the hood, the outside rear-view mirrors, and the door handles.
In its history, the Volvo C70 was made available originally as a couple and then later made another version which was the convertible. Both these models had low-pressure and high-pressure, 5-cylinder, turbocharged engines, manual transmissions and automatic transmissions. It was built in Sweden that also produced the 70-series sedans and wagons. And it also was the very first modern convertible that Volvo the automobile manufacture had crafted. It was first introduced as a 1997 model in Europe, and it also made its public debut as a 1998 model in North America, which still is Volvo’s largest market to date. Volvo wanted to ensure that this vehicle, the Volvo C70, was still a quality vehicle, even if it was quite new for the automobile manufacturer.
At the beginning of the production, a series of special edition models were also crafted. It featured a unique two-tone premium leather interior, along with other optional equipment that was made standard for this special edition line. These optional equipment included the SC-901 Dolby Surround Sound stereo that had a 3-disc integrated changer unit which was done so thru a cartridge.
The market was more or less cut in half. Some were pleased with the models, however, some also did not. It was surmised that it was all due to the limited demand that time for coupes and also due to the high price of both models – the coupe and the convertible.
To continue Volvo’s tradition of offering quality and safe vehicles, auto parts companies like Volvo Parts and Used Volvo Parts offers top of the line Volvo parts. Volvo Parts and Used Volvo Parts offers new and used Volvo auto body and engine parts, headlights, transmission parts, tail lights, radiators, wheels, and more.
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