At the close of July, the market is indicating a variety of actions and the smaller and more fuel-efficient models are getting some attention again after softening for just over a month once the tax season expired, according to Ricky Beggs, VP and editorial direct at Black Book in his recent Beggs on the Market report.
"Even some of the six- to eight-year-old models are again needed for the retail market. If you are looking for some 12- to 18-month-old off-rental units you are looking at a segment of the market that might just be the most unstable in value right now," Beggs said. "To understand this market movement, just remember to look at the calendar and you see August and September bringing us another model year into the market."
As market values are falling, and contrary to the smaller more fuel-efficient models being the more stable segments in the market as noted, gasoline prices continue to decline. This past week gas fell by another $.04 to $3.59, which is $.09 below the $3.68 price per gallon of one year ago, according to Black Book.
Overall, according to this weeks report, the cars average segment change this past week was -$81, almost twice the level of change of -$42 one year ago. Only once in the past year has the average segment change been at a greater declining level, and that was the -$84 for the week ending Sept. 20, 2013.
"The car segment with the lowest weekly declining level was the Near Luxury Cars at -$31 or a -0.2-percent change. This is a segment that has been declining greater than the overall car segment change for the previous five weeks," Beggs said. "Interesting enough is that this same segment of Near Luxury Cars, which includes vehicles such as the Audi A4, the Cadillac CTS, Lexus ES350, and even the Lincoln MKZ, one year ago, was also the lowest declining segment within the cars."
As has been the case for every week since the week ending Feb. 28, 2014, the level of change for the trucks has been less than the cars. But similar to the cars the trucks are softening even more as the summer weeks pass coming in at -$59 this past week, the largest weekly decline for the trucks since the week ending Feb. 21, 2014.
After a rather large decline for the Compact Pickups of -$50 two weeks ago, this segment bounced back with only a $2 declining change this past week, and similar to the -$4 change of one year ago.
On the softer side of the trucks, the large truck based utilities, the Full-size SUVs and the Luxury SUVs had the largest declining levels of any segment for the past three months. Respective changes of -$149 and -$148 for these SUVs this past week are similar to the levels of change we have seen this past week, and several times with the Prestige Luxury Cars and the Premium Sporty Cars.
View this weeks Beggs on the Market video below: