Auto and Motor Vehicle Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,600 auto and motor vehicle wholesalers in the US sell or arrange the purchase or sale of new and used passenger cars, trucks, trailers, and other motor vehicles to commercial dealers. They buy from dealerships and auctions and sell to other dealerships and through auctions. Firms may offer financing, reconditioning, transportation, storage, inspection, and other services.
Seasonal Demand Affects Pricing
Demand for used vehicles peaks during the summer months, with volume often twice as high as in the winter, according to the National Auto Auction Association.
Volatile Pricing, Economic Vulnerability
Used vehicle wholesale pricing can be volatile and decline during periods of economic weakness.
Industry size & Structure
The average auto and vehicle wholesale or auction company employs fewer than 10 workers and generates about $139 million annually.
- The auto and vehicle wholesaling and auction industry includes about 4,600 companies that employ 138,600 workers and generate $640 billion annually.
- The industry is concentrated; the top 50 companies account for almost 90% of industry revenue.
- Large vehicle auction providers include Manheim (Cox), ADESA, and ACV. R. Hollenshead Auto Sales and Wholesale, Inc (RumbleOn) are the largest independent vehicle wholesalers.
- Before the pandemic, auto auctions helped sell about 12 million cars annually.
- Automobile wholesalers account for 54% of sales, while heavy truck, trailer and tractor wholesalers account for 8% and light truck and van wholesalers account for 18%.
Industry Forecast
Auto and Motor Vehicle Wholesalers Industry Growth
Recent Developments
Sep 24, 2024 - Sales Down, Inventories Up
- Sales for motor vehicles and parts wholesalers decreased 0.9% in June 2024 compared to a year ago and were down almost 3% from the previous month, according to the US Census Bureau. Inventories for motor vehicles and parts wholesalers increased 10.9% in June 2024 compared to a year ago and were up 0.9% from the previous month. Producer inflation for motor vehicles and parts wholesalers rose 1.8% in July 2024 compared to a year ago, according to producer price data from the US Bureau of Labor Statistics (BLS). Employment and wages at motor vehicle wholesalers increased in July 2024 year over year. Average wages for nonsupervisory employees in the industry reached $32.66 per hour in July 2024, per the BLS.
- Consumer confidence levels increased in August 2024, according to data from The Conference Board. The Conference Board’s consumer confidence index was 103.3 in August 2024 from 101.9 in July 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those over age 35 and those in the income category of over $100,000. Plans for large appliances and smart phone purchases rose on a six-month average basis. Plans to buy a home dropped to a 12-year low while plans for car purchases improved on a six-month average basis.
- Car repossessions increased 23% in 2023 compared to the previous year and were up 14% compared to pre-pandemic levels, as consumers struggle with financial pressures, according to a Cox Automotive report in July 2024 reported by Jalopnik. Cars are typically repossessed after falling behind on car payments for several months. Monthly bills are becoming unaffordable for many vehicle owners due to inflation, higher car prices, and high interest rates. The average monthly payment for new car buyers in the US was $760 per month for an auto loan in May 2024, with 17% of owners making monthly payments of more than $1,000. On top of high monthly car payments, consumers are also facing significant increases in car insurance costs and rising housing costs, which are contributing factors to missed payments, according to the article.
- There were 561,653 wholesale auction sales in July 2024, which is 24.2% higher year over year and up 7.6% compared to the previous month, according to AuctionNet data from the National Auto Auction Association in Auto Remarketing. Year-to-date, wholesale auction sales were up 10% year over year. A record number of electric vehicles, 10,314, were sold at auction in July, up 96% year over year. Other categories showing volume growth were full-size pickups (up 30% year over year) and midsize crossovers/SUVs (up 32.3% year over year).
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