SOURCE: Carlypso

Carlypso

May 19, 2015 11:25 ET

Car Technology Company Carlypso Shares Analysis on Best Deals for Used Cars This Spring

Carlypso's Latest Analysis of Wholesale Market Data Highlights Which Used Cars Are "Market Movers," Making Them a Great Option for Price Haggling for the Savvy Car Shopper

SAN CARLOS, CA--(Marketwired - May 19, 2015) - Carlypso, the first technology company to buy and sell used cars hassle-free, highlighted today some great used car deals for the savvy car shopper based on wholesale market data it evaluated from December 2014-March 2015. The study examined 333,526 wholesale transactions from December 2014 to April 2015.

According to Carlypso, the wholesale vehicle markets are often the best indicators behind which cars are "hot" and which remain oversupplied rentals or duds with consumers. While December is typically a time to "offload" slow moving inventory, March and all of tax season are great times for dealers to sell used inventory. Hence, while prices remain highly seasonal, the wholesale market is still a great relative indicator of which vehicles are in demand.

Carlypso found that as a whole, wholesale prices are up 2.0% from December to end of March -- illustrating just how seasonal used car sales can be1.

Standout Losers
From December to the end of March, luxury brands and electric vehicles took the largest hits. Standouts amongst these "losers" are:

                 
Vehicle   December Price   March Price   Average Deprecation
(Dec-March)
  # Included in Sample
2012 Nissan Leaf SL   12,031   10,894   9.45%   346
2012 BMW 528i   29,587   26,939   8.95%   260
2012 Lexus ES350 base   23,207   21,447   7.59%   346
2011 BMW 328i   20,170   18,953   6.03%   593
2013 Nissan Rogue SV   17,672   16,786   5.01%   125
2013 Honda Civic LX   13,620   13,207   3.03%   324
                 

1 Taken from 333,526 wholesale completed transactions at an average transaction price of $16,931

  • The Nissan Leaf and other electric cars (including many other year trim combinations) fared vary poorly. Excess supply and diminishing demand caused a 10% price drop in just 4 months on late-model Nissan Leafs. Lease turn-ins make up the majority of volume.
  • BMW 3 and 5 series both fared poorly. With lots of off-lease inventory, the base model 528i and 328i suffered large residual losses. Owner might have suffered almost $2,600 drop in value over just 4 months on the BMW 528i.
  • Even some traditionally "strong" cars had declines. The Lexus ES350 and Honda Civic both experience accelerated depreciation. Most other Honda and Lexus products fared very well.

Consumer Implications

While excess inventory piles up for BMW and other lightly used electric and luxury cars, this has two major implications.

1. For the financially savvy consumer, it means you can negotiate much more heavily on a car with a falling market. 
2. Secondly, it also means that if you were considering a new Nissan Leaf or BMW 528i, buying used may be your best bet. BMW and Nissan are unlikely to offer incentives which can match the great deals this spring on one of these used cars.

"Because of the work we do buying cars as part of a trade network before they go to dealers, we have the skinny on wholesale market prices," said Christopher Coleman, Co-Founder of Carlypso. "Our analysis highlights the biggest price drops across popular car models which can point out to consumers where they can find the best deals. If consumers are open to buying used cars right now particularly for the BMW 528i or Nissan Leaf, they should have the ability to negotiate a great price."

About the Study

The study examined transactions from over 333,526 wholesale vehicle transactions from December 1, 2014 to April 15, 2015. Average wholesale transaction price was $16,931 for the vehicles in the study set. The study included only complete sold transactions that occur during a wholesale vehicle transaction. Transactions completed outside of the wholesale auction (but as a result of going through auction) were ignored.

About Carlypso
Carlypso is the first technology company to buy and sell used cars hassle-free. Carlypso generates a fair market price for vehicles based on millions of vehicle transactions each month, and coordinates all of the logistics for the seller, including finding the buyers, to get sellers the best price possible on their vehicle. The company has developed a secure proprietary device installed on cars to track vehicles, allowing buyers to do test drives on their own. Carlypso also provides Carlypso Deals, finding the best deals on inventory before it goes to the dealer, and passing that savings onto the consumer. Carlypso, based in San Carlos, CA, has sold hundreds of cars to date for consumers throughout California and is expanding nationwide. For more information visit www.carlypso.com.

Contact Information

  • Media Contact:
    Kerry Metzdorf
    Big Swing Communications
    Email Contact
    978-463-2575