GAINESVILLE, GA - The dealers at the auctions continue to need cars and are more than willing to step up to the plate in order to have the right inventory for improving retail sales, according to Ricky Beggs, VP & managing editor at Black Book.
June 15 Beggs mentioned a record number of adjustments made by Black Book Editors. “We didn’t set any new records this past week with the Daily adjustments, but it was still a very active week. We had at least five vehicles adjusted multiple times during the week, with all adjustments increases in published values,” noted Beggs. “Even though we are in the middle of the year, and at a time seasonality wise, where we would normally start seeing some softness in used values and activity — forget normal. Fortunately at Black Book our methodology contains no algorithms with seasonal or annual depreciation expectations.
The car market continues its positive trends as the average car segment increase this past week was +$30 versus the +$12 for the week ending June 12, according to Black Book. Prestige Luxury Cars and Sporty Cars lead the increases, being up $108 and $96 respectively.
The four segments that dropped this past week, and at a maximum of only -$9 were compact cars, full-size cars, entry mid-size cars, and entry-level cars.
“The truck segments tracked the same patterns as cars with the average segment increase being up $31,” said Beggs.
Luxury SUVs and mid-size crossovers lead the way at +$109 and +$101 respectively. The weakest segment was the compact pickups being down a miniscule -$5 for the week.
Toward the end of last week, the recent gas price increases have garnered some press and water cooler talk. “I have taken a few calls asking if we have seen a change in the interest on smaller more fuel efficient vehicles and drops in the trucks. The concern over weaker trucks sure hasn’t appeared,” Beggs noted.
The data last week didn’t give Black Book any indication of strength in the smaller cars, but the thought is at least in the back, or should I say front, of peoples’ minds.
“A couple of the Editors feel the real tipping point will be when the national average price per gallon gets real close to the $3.00 level,” said Beggs.
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