The market continues the more traditional seasonal movements and for the first three weeks of July the average change amount has increased within the cars and trucks. according to Black Book.
"This past week the cars average segment change was -$68 as compared to the previous two weeks of -$56 and -$45. The -$68 change was the largest declining movement since the week ending Jan. 24, 2014 at -$72. For comparison purposes, the year-ago change level was only -$41," according to Ricky Beggs, VP and editorial director for Black Book in his "Beggs on the Market" report. "After such a strong Spring market, the remainder of the year may possibly see slightly larger declines as compared with typical seasonal patterns."
The smallest dollar level declining segment this past week within the cars was the Compact Cars at -$33. This has also been the most consistent moving segment during July with -$31 and -$20 the prior two weeks.
"The truck segments are trending in the same direction, but at slightly lower amounts of decline," according to Beggs. "This past week the average change was -$54 following smaller declines of -$39 and -$20 the prior two weeks. The last time the decline for the trucks was greater than this past week was the week ending February 21 when the level of change was -$67."
Several truck related segments have been fairly consistent in their weekly movement during July with results of the past three weeks for full-size passenger wagons changing by -$10, -$2, and -$2 respectively, and the full-size pickups at -$20, +$6, and -$19, respectively for the past three weeks. Also during July, Minivans have declined a little more, but at consistent weekly changes of -$32 this past week and -$36 and -$22 the prior two weeks, according to Black Book.
"With all of the changes and the number up and down the overall dollar change week over week is a decline of -$103. This is the largest weekly declining amount since the -$108 for the week ending January 24, 2014 during some of the almost forgotten brutal winter weather," Beggs said. "One year ago, the average weekly change was even greater at -$127 when only 14 percent of the changes were increasing value adjustments. So, even with the level of changes today we still have a pretty solid and active market within the wholesale channels."
There is other movement that is always of interest and that relates to the price of gasoline and diesel fuel.
"After all the hype in July about increasing gas prices at $3.64 per gallon we are almost a half a cent less than the year ago period after the 4.3 cent drop this past week," Beggs noted. "Diesel even dropped 1.9 cents and at $3.89 at the pump on a national average that is only 2.7 cents over year ago levels."
Check out the most recent "Beggs on the Market" video below: