January 12, 2018
CARS 2018 Industry Update
Read about the latest in the automotive metal market and vehicle donation industry from the experts below:
Industry insights and foresight: Adjust your marketing messaging to incorporate “Don’t trade it, donate it”
“More new car sales translates to more used cars in the marketplace, which translates to an increase supply of donated cars.” —Brian Caldwell, V.P. of CARS Operations
Research shows that in 2018 the vehicle donation and auto remarketing industry are poised for another year of growth. The auto industry is coming off another strong year for new and used vehicle sales, and as more cars are purchased, there are more opportunities for your supporters to donate their vehicles rather than accept a low trade-in offer. In fact, new vendors “are knocking on my door trying to become a CARS auction vendor” (CARS Operations).
2018 is a great year for our nonprofits to acquire new vehicle donors to support their cause. There’s been a growing demand for new vehicles positively influencing the growth of the global automotive metal market. According to a recent article in Auto Remarketing Magazine (2018), the latest from the Black Book Market Insights report that dealers “...feel like [their] new- and used-car business will improve in 2018 from a pretty darn good 2017. All of the economic indicators substantiate that theory and the recently passed tax laws should boost both short- and long-term.” A strong market presents more opportunity for trade-ins, so incorporate ‘Don’t trade, it donate it’, in your messaging to help your supporters become aware of donating as an option.
Metal prices influence car prices
CARS' network of auto auctions allows for each vehicle to be sold to the right buyer, maximizing returns. Metal tends to influence car prices and vendors are raising purchase prices for lower-end inventory. Plus, we’re seeing the price of scrap metal continue to strengthen as the price of steel continues to improve.
“The higher the price of metal, the more revenue our partners can receive from each donated vehicle.” —Brian Caldwell, V.P. of Operations.
In 2017, CARS processed over 100,000 vehicle donations and almost 75% of our partners experienced YOY growth in their CARS program. We look forward to another record year in donations and providing first-rate service in 2018.