By Ken Sopp, NVLA President

As we move into summer, I’m excited to report that our Conference Committee has been hard at work contacting and finalizing speakers and topics for the 2023 Annual Conference On the Road Again, to be held October 11-13 at the Sheraton Austin at the Capitol in Austin, Texas. We think this year’s program will be outstanding and we encourage everyone to register and make your hotel reservations soon.

For our keynote, we will be welcoming Stewart Stropp, Executive Director, EV Intelligence, J.D. Power, who will present a timely overview entitled: Electric Evolution: How the Rise of EVs and IRA are Affecting Leasing. Stewart’s knowledge of the field is extensive and he has been featured in a number of industry publications and national media outlets like the Wall Street Journal and Forbes. He regularly conducts nationwide speaking tours on a variety of subjects related to the automotive retail experience and we’re looking forward to having him share his analysis and insights with NVLA members. You can read more about Stewart’s wealth of experience below. We will keep you posted once additional speakers are finalized.

Attention Conference Sponsors: NVLA is pleased to offer sponsorship and exhibitor opportunities designed to extend value year-round. For more information on how to become an annual or conference sponsor, please contact Suzanne Fedie, Executive Director.

Clemens-Pender Award Nominations Due by July 1: Don’t forget to submit your nominations for the annual Clemens-Pender Lessor of the Year Award. This award is presented annually to a deserving lessor. The recipient should also be a NVLA member and the nomination should attest to and document the individual's contributions to the Association, the industry, as well as their community.

In this issue, you will find a new member profile for Eyo Toe from LHPH Capital. We also want to welcome her to the NVLA Editorial Board and thank her for her participation in this very important role. We have a regular update from Tom Kontos in his Kontos Kommentary and another valuable LinkedIn Tip of the Month from Tarry Shebesta. Don’t forget to review your member benefits to make the most of your membership. This month’s benefit highlight covers affinity programs. 

Also, if you haven't renewed your NVLA membership yet, please renew today!

I look forward to seeing all of you in Austin, TX, for our national conference on October 11-13, 2023, at the Sheraton Austin at the Capitol. Enjoy your summer!

Eyo Toe

Business Development and Marketing Associate, LHPH Capital

Eyo Toe is a Business Development and Marketing Associate at LHPH Capital who brings experience in marketing and analytics to her role at LHPH. Over the past three years, Eyo has managed a diverse spectrum of marketing initiatives spanning traditional and online channels and helped build relationships with dealer partners as LHPH Capital continues to grow. Eyo joined the LHPH team after finishing her Master of Business Administration (MBA) from Point Loma Nazarene University in August of 2020. 

Why you joined NVLA

I joined NVLA to broaden my knowledge of the leasing space. I consider myself a lifelong learner and, in an industry like ours, there is always more to learn. 

What you hope to get out of your membership, personally and professionally

What I am most looking forward to is joining a community of like-minded professionals who are passionate about elevating the leasing industry. NVLA provides a platform where professionals in the vehicle leasing space can connect and network with peers and experts. I look forward to attending industry events, conferences, and forums where valuable relationships can be established.

Anything else you feel would be useful about the benefits of NVLA and the benefits of the NVLA annual conference.

The NVLA Conference is a great opportunity to network in person with new and present colleagues. Conferences also offer a unique opportunity to gain valuable insights into the latest trends, developments, and challenges within the vehicle leasing industry.

Why you joined the Editorial Board and what you would like to accomplish in that role.

I am excited to bring my marketing expertise and knowledge to the NVLA Editorial team. My primary goal is to make a meaningful contribution to the LeaseWire newsletter by identifying emerging trends and delivering quality content to our readers. 

By 700Credit, NVLA Member

Sponsored Content 

For years, dealers have been using increasingly sophisticated marketing data and technologies to aid in their equity mining and conquesting efforts. But today, smart dealers are now easily integrating credit-first soft-pull tools into their daily workflows to build additional conquest opportunities when customers bring their vehicles in for service. 

These additional tools built with soft-pull technology are helping dealers and service managers offer quick valuation calculations to show customers how and where it might make sense to consider a new vehicle on the lot compared to the repair bill. 

Advanced Resources To Make Conquesting More Efficient

When customers arrive for their scheduled service visit, service lane professionals are now leveraging prescreen data that provides information such as the amount owed on a vehicle, powering equity calculators that show how much a customer has available for a new car. 

The data and tools also provide current monthly payment, month’s remaining on the loan and more, so the current payment can be compared to a new payment. Prescreens can be run automatically or manually on conquest customers (service not sold) resulting in more upsell opportunities in the service lane. This can also be particularly powerful in comparing the cost of a new vehicle and payment to potentially large estimates on service activity.

With this data insight, dealers now have a competitive advantage in selling more cars while satisfying customer needs.

By Tom Kontos, Chief Economist, ADESA Auctions

Courtesy of Tom Kontos, Kontos Kommentary

Summary 

Average wholesale used vehicle prices reached their spring/tax season peaks in April and have plateaued near those levels in May. However, average prices are down by more than $1,000 from last year's peaks.

Other than certified pre-owned (CPO) sales, which have benefitted in part from expansion of those programs to include older units, spring used vehicle retail sales have been underwhelming.

Wholesale Market Trends* 

According to ADESA US Analytical Services’ monthly analysis of auction industry used vehicle prices by vehicle model class, wholesale prices in April averaged $16,476 — up 0.6% compared to March, down 6.3% relative to April 2022, and up 43.2% versus pre-pandemic/April 2019, as seen below. Car segments showed month-over-month price declines, while truck segments showed modest gains on average.

Average prices have softened modestly in May and stood at $16,123 for the week ending May 14.

*Source: Analysis in this section is based on over six million annual sales transactions from over 250 of the largest U.S. wholesale auto auctions, including those of ADESA US as well as other auction companies. ADESA US Analytical Services segregates these transactions to study trends by vehicle model class, sale type, model year, etc.

To read more, click here.