Used Car Market Report

• Combined purchases by commercial and government fleets increased by 16 percent in 2010 to 675,200, with commercial fleets accounting for 68 percent of the total, up from 59 percent in 2009.
• Government fleet purchases fell 10 percent in 2010 to 217,000, as mounting budget deficits hit state and local governments.

• The price of gasoline escalated in the fourth quarter, causing fleet managers to sharpen their focus on fuel economy in their second-cycle purchases. Fortunately, auto companies continue to make progress in increasing fuel efficiency across all models.

• While fleet managers are more closely examining pure electrics and plug-in hybrids, high upfront costs, limited availability, and less flexibility in use will keep actual purchase numbers low.
• Fleet managers enjoyed a successful experience at auction when remarketing their vehicles in 2010. Mileage – and seasonally adjusted prices for end-of-service midsize cars – reached an all-time high in the first half of 2010 and came close to reaching that level again in the fourth quarter. A similar index for end-of-service pickup trucks reached an all-time high in the second half of 2010.

• With used car supplies limited, these record-high prices were achieved even as fleet vehicles returned to auction with higher mileage than ever. In 2010, the average end-of-service midsize fleet car sold at auction had 68,000 miles, up from 66,000 in 2009 and 64,000 in 2008. Average mileage on vans and pickups coming out of fleet is generally well over 100,000 miles.