This week, Black Book's Market Insights Report shows evidence that spring has come to an end, with cars declining in values greater than trucks.
The valuation analysts at Kelley Blue Book today reported the estimated average transaction price for a light vehicle in the United States was $37,185 in May 2019. New-vehicle prices increased $1,320 (up 3.7%) from May 2018, while decreasing $208 (down 0.6%) from last month.
"Although May's sales tally is expected to be down, the good news is that average prices for those sales rose nearly 4% from one year ago," said Tim Fleming, analyst for Kelley Blue Book. "SUVs bounced back in May 2019 and drove many of those increases for automakers, especially those with new and redesigned models on dealer lots. However, with this expected to be the fifth down month in a row, the question for this year remains whether automakers will start to trade some of their pricing power for greater incentives and more sales."
Taking a look at the "Days Supply," full-size pickups at a four-year high. But, while used pickup values remain high, incentives are likely to increase due to high supply which would in turn impact used values, according to data from Black Book.
“The depreciation rates normalized last week after a strong spring market. Pickups continued to show strength in values,” said Anil Goyal, executive vice president, Operations, for Black Book.
Volume-weighted, Black Book noted that overall truck segment (including pickups, SUVs, and vans) values decreased by just 0.08% last week. In comparison, the market values were up by 0.03% on average during the prior four-week period. In trucks, the values of pickups increased the most.
Fiat Chrysler had another strong month with a more than 6% increase due to Ram and Jeep products. Kelley Blue Book noted that Ram prices were up nearly 5% based on the Ram 1500 and Ram 2500.
For medium-duty trucks, a steady volume is helping keep downward pressure on the overall market as used prices continue to depreciate. Higher mileage, heavy-duty trucks are continuing to enter the market with demand steady, leaving buyers no option but to purchase less desireable units, according to Black Book.
Originally posted on Work Truck Online