Industry

Top 3 Takeaways from the 2022 CAR Expo

by Ben Price

On March 23rd and 24th, 2022, the annual Conference of Automotive Remarketing (CAR) took place, where industry leaders and experts from all across the country met to discuss the current state of the automotive industry. Everything from auto transportation to vehicle inspection technology and insurance products were present, with speakers discussing a range of industry-related topics.

Here are the three biggest takeaways from the 2022 CAR Conference (Conference of Automotive Remarketing).

The Used Vehicle Market is Changing

A large portion of the CAR conference was devoted to the discussion of the used vehicle market, and how it has changed. It was shared that supply will continue to be limited for the next three to four years, with the chip shortage allowing used vehicle prices to rise well above the normal ceiling represented by new vehicle prices.

With this said, the used market has been improving with the new inventory slowly building. Wholesale prices are now down 6%, with retail down 3% respectively. To combat this, rental companies have now begun buying up the wholesale market due to their inability to buy new vehicles.

Last year, dealers paid more for wholesale vehicles, but weren’t able to increase retail prices. Comparatively, this year retail prices continued to stay the same though dealers paid slightly less for wholesale. The show panel predicted that next year will have a normal production rate, but inventory will still be low.

Rise in Online Car Shopping

Another major discussion point at the conference regarded the sharp rise in online car shopping. Major names like Carvana are on the rise to become even bigger, with its recent acquisition of Adesa. Purchased for a whopping $2.2B, the used car retail marketplace is projected to help jumpstart used car sales adding a new revenue stream for the business. This acquisition is also important, as it will allow Carvana to be less supply-constrained, sell dealers third-party access to the platform, and enables Hertz to sell vehicles directly to consumers.

This rise in online shopping doesn’t stop at Carvana, however, as the industry is seeing a heavier online focus across the board. For instance, it was shared that General Motors recently launched CarBravo, which is marketed as a new way to shop for used vehicles. It’s also projected that Amazon will enter the vehicle sales this year; with the company taking a whopping 34% cut of third-party seller revenue in 2021, this could spell bad news for sellers.

Taking Advantage of New Technologies

Beyond online car shopping, the automotive industry has begun embracing all sorts of advancements in new technologies. Experts at the CAR conference spoke about the many different ways that technology is advancing the auto industry forward in 2022 and beyond. A segment of the conference was even kicked off by sharing the famous quote by Willian Gibson: “The future is already here. It’s just not evenly distributed.”

Steve Greenfield of Automotive Ventures shared that the industry is “going to see more change in the next 10 years than [it has] in the past 100,” citing new tech like vehicle inspection AI, electric vehicles, and online marketplaces as examples.

But even beyond the topics shared by Greenfield, the industry is seeing a massive shift to new technologies. Car transportation, for example, is currently undergoing a massive transformation due to the popularization of TMS (transportation management software) solutions. A TMS solution allows dealerships, brokers, and auctions to ship cars to customers through easy-to-use software, while also managing paperwork and billing through their mobile devices.

Super Dispatch does just this, while also featuring its own load board, known as the Super Loadboard which is a marketplace that simplifies how cars can be shipped, tracked, and managed, all while cutting down on the work required on both the shipper and carrier side of things. If Super Dispatch seems like a service that’s right for you, then consider trying it out yourself. Request a demo today!

Published on April 1, 2022

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