COVID-19 HAS CREATED A GREAT DEMAND FOR USED CARS
S. Allen Monello, D.P.A.
Managing Member
Automotive Industry Center for Excellence, LLC
According to the Wall Street Journal, there is an increased demand for used cars due to the pandemic:
“Sales of used vehicles in the U.S. have roared back after dropping 38% in April, when states were shut down and some dealerships were forced to close. In June, used-vehicle sales rose 17% above the pre-pandemic forecasts, according to research firm J.D. Power."
"A confluence of factors is drawing buyers to the used-car lot. Some have used federal stimulus checks on their purchases, dealers and analysts say. Interest rates have fallen during the pandemic, to about 4.73% on average for a 36-month used-car loan, from about 5% in early March, according to Bankrate.com.”
"The average wholesale price in June likely will finish at an all-time high of more than $14,600, according to Manheim, which has tracked an index of used-car values since the mid-1990s."
"The retail prices that buyers pay at dealerships have been more stable, declining only 3%-5% this spring before recovering. That means dealers who were buying used cars from auctions on the cheap in late March and April enjoyed unusually big profit margins, said Jonathan Smoke, chief economist at Cox Automotive, which owns Manheim.”
If you are interested in registering for an online pre-licensing course to become a Florida Independent Used Car Dealer, please click here.
ABOUT THE FOUNDER
S. Allen Monello, D.P.A. is a Managing Member of the Automotive Industry Center for Excellence, LLC (AICE), a regulatory consulting and training firm specializing in the motor vehicle industry. Dr. Monello has provided regulatory consulting and training services to franchise, RV, independent and mobile home dealers, as well as finance companies since January 1992. Prior to that time, he served as Assistant Director of Florida’s Division of Motorist Services (formerly known as DMV) where he was responsible for overseeing statewide operations staffed by over 600 employees.
Upon leaving DMS he started a title processing and dealer regulatory consulting service. Monello was retained by the Florida Independent Automobile Dealers Association (FIADA) as an independent contractor and served as the association’s Director of Governmental Affairs. He left the FIADA to become a Senior Vice President and Chief Compliance Officer for Smart Choice Automotive Group, a publicly traded company consisting of 26 dealerships, a finance company, and other related companies. Afterward, he and retired partner Larry Peters then managed the FIADA under contract for several years.
Ten years ago, Monello started and managed the Tag Agency of Pinellas, Inc., (a privately owned and operated full-service tag agency under contract with the Pinellas County Tax Collector) for three years. TAP, as it is commonly known, provides full title and registration services to dealers, financial institutions and businesses affiliated with the motor vehicle industry; it is not open to the public. During this time, Monello gained valuable experience in seeing and understanding the challenges dealers have in preparing and submitting paperwork.
Monello continues to provide compliance consulting and compliance risk assessments to dealers regarding federal and state laws and is also an expert witness on behalf of dealerships involved in litigation. He received a Doctor of Public Administration degree from Nova Southeastern University in Ft. Lauderdale, Florida, where he served as an Adjunct Professor for over 30 years. He is certified by the Florida Supreme Court as a Family and County Court Mediator. He also holds the certification of AFIP Certified F&I Professional and Consumer Credit Compliance Professional awarded by the National Automotive Finance Association.
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