There is still enough interest and used-vehicle demand that, for the past six weeks, at least 60 percent of the adjustments were increases, according to Ricky Beggs, editorial director for Black Book.
"For seven of the past eight weeks there are three car segments that have consistently increased. These were also the strongest segments during this time of the year for the past two years," Beggs noted.
These three segments, the Entry Level Cars, the Entry Mid-sized Cars, and the Upper Mid-size Cars, at an average segment price ranging from $6,141 to $8,721, are well below the car segment average price of $14,316, which currently includes vehicles from three- to eight-years-old.
To confirm the strength in the market when comparing this year to a year ago, the then three to eight year old cars averaged slightly less at $14,001. The most positive adjusting segments, mentioned earlier, are well under the average car segment value. Is this the cause of the more active and increasing segments, especially during the traditional tax season market?
Within the truck segments, a few of the lower average priced segments, the Cargo and Passenger Minivans at $4,977 and $7,667, are also tracking at the better week over week retention levels behind the three pickup segments. The remaining twelve truck segments all are at five digit level pricing, with the overall average truck segment price at $13,182.
"This past week with ten of the fourteen truck segments increasing week over week, the trucks finished positive overall at +$5," Beggs said. "Overall with the better retention segments within the cars and the trucks being the lower priced segments confirms our thoughts that the tax season cars fit into a price level that most every consumer can afford even though they might not actually be an entry level price buyer."
According to Beggs, as the cars have become a little more stable, the dollar spread between the strongest increasing segment and the largest declining segment since the week ending Mar. 1, 2013 has consistently gotten smaller. From a leading $137 and $141 spread the first two weeks of March, the spread has consistently gotten smaller, finishing at an $80 range this past week.
"Although the truck increasing to decreasing spread was not consistently getting smaller each recent week, when looking at the seven week average spread the cars and trucks were almost identical at $107.85 for the cars and $107.71 for the trucks," Beggs said.
View this weeks Beggs on the Market video below: