The used-vehicle market continues to behave as we expect overall. The activity was about the same this week with the need for additional adjustments due to the market working to make room for another model-year of vehicles to enter the market, according to Black Book.
This past week that number of adjustments rose to 1,945 per day. With only 16% of those adjustments being increases, we have the lowest level within the past four weeks and the second lowest number of percentage increases during the past year. With the larger level of overall adjustments and the lower level of increases, you are probably wondering how soft the overall market was this past week.
Car & Truck Segment Performance
Within the cars, the average segment change is as consistent over the past four weeks as you could expect, -$43 this past week after changes of -$41, -$42 and -$41 each of the previous three weeks. Compared to a year ago, the cars are maintaining value slightly better this year as compared to year the ago change of -$50. The softer segments within the cars this past week, percentage wise, were the Entry Level Cars at -1.02%, the Full-size Cars at -.58%, followed by the Entry Mid-size Cars at -.52%. An interesting point is these same three segments led the percentage change declining level a year ago as well.
The truck segments continue to require greater downward change this past week at -$68 or -.54%. A year ago we were at -$47. The last time we saw the trucks change at least at this current level was back at the week ending November 9, 2012 at -$70. With a couple of segments declining over $100 for the week, the Compact Pickups and Mid-size Crossovers at -$103 each and a couple more at -$94 for the Compact Crossovers and -$95 for the Full-size Crossovers, we finished with eight of the fourteen truck segments at -.5% or more.
Another area of the market that warrants a closer look in the potential movement of values is that group of mostly older vehicles, those seven to twelve years old. These may not be front-line ready vehicles, but are important in the below prime and BHPH markets. One only has to look at the average age of vehicles on the road and also the mix of vehicles being traded in, especially within the franchised stores. The availability of some older vehicles could be referred to as the slow motion mirror image of the Cash for Clunkers program. Only this version is a slower movement reaction. We would like to hear your thoughts on these vehicle market values.
About Black Book
In business since 1955, Black Book is a provider of accurate pricing insight, mobile solutions and online vehicle trade-in valuation for the automotive industry. The company offers the industry’s most accurate vehicle valuation insight to dealers, lenders, remarketers and government agencies. Black Book also provides automotive shoppers with instant and accurate credit-score estimates and trade-in appraisals, which provide the highest quality sales leads for dealers. Click here to view Ricky Beggs’ weekly video series offering the latest insight in the auto market http://ow.ly/aHFD6. Follow Ricky on Twitter @BeggsBlackBook (https://twitter.com/beggsblackbook) and on Facebook http://www.facebook.com/blackbookUSA.