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 5,000 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 about 26 workers and generates about $133 million annually.

    • The auto and vehicle wholesaling and auction industry includes about 4,800 companies that employ 125,000 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
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Nov 10, 2022 - Clogged Port Delays Deliveries
                              • US car buyers face longer waits as vehicles clog the German port of Bremerhaven, The Drive reports. New vehicles from Stellantis, Tesla, BMW, Renault, and Volvo are among others piling up at the port. Port congestion along with high demand for vehicles and already-long wait times for new models, is further exacerbating the supply issues that have plagued the industry since the pandemic began. A lack of ocean-going vehicle carriers, drivers to move shipments out of the port and to haul away containers, as well as roll-on/roll-off drivers to disembark vehicles off of ships are creating a “perfect storm,” at the port, according to CNBC. Waiting time for vehicle carriers has routinely exceeded 50 hours this year, peaking at 60 hours in September. Historically, that waiting time has rarely exceeded 30 hours in previous years, according to VesselsValue data.
                              • Automakers are developing new voice control capabilities for vehicles and adding voice commands that go deeper into the car’s controls, including verbal cues for turning on windshield wipers, adjusting mirrors, or raising the tailgate, The Wall Street Journal reported in November. In an effort to keep drivers’ eyes on the road – and not on dashboard screens – carmakers are expanding voice capabilities and using artificial intelligence to transform cars “into a travel companion of sorts,” WSJ wrote. More drivers are embracing voice controls as the technology has improved. Some 40% of owners said they used their in-vehicle voice systems at least once a week, up from 30% in 2019, according to a US survey conducted last year by research firm Strategy Analytics, according to WSJ.
                              • The average price for a new car remained solidly over $48,000 in September, down slightly from August, according to data from Kelley Blue Book (KBB). That figure represents more than 80% of median income in 15 US states, reports YAA Car Search. Moreover, industry insights from KBB and TrueCar indicate that new car prices have yet to peak. Adding to buyers’ pain, interest rates on auto loans have soared, with the average annual percentage rate on financed new vehicles in the third quarter at 5.7%, up from 4.3% at the same time last year, and up from last quarter's 5%, according to Edmunds.
                              • The expansive climate, health and tax bill signed into law by President Biden in August 2022 includes $14.2 billion for tax credits for new and used electric vehicles (EVs). The bill, named the Inflation Reduction Act, provides incentives for purchasing emissions-free vehicles and for installing alternative fueling equipment like EV charging stations. Only EVs assembled in America will qualify for the $7,500 EV tax credit, which will be phased in over the coming months and years. Other factors determining who and what vehicles qualify for the tax credit include restrictions on buyer income, the vehicle price and type, and the vehicle’s battery must be made in North America. Auto analysts say the new requirements will likely block some buyers, particularly wealthier individuals, from receiving tax credits, but are expected to incentivize lower-income households to purchase EVs in the near future.
                              Get A Demo

                              Vertical IQ’s Industry Intelligence Platform

                              See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                              Build valuable, lasting relationships by having smarter conversations -
                              check out Vertical IQ today.

                              Request A Demo