GAINESVILLE, GA – Prices continue to climb in most segments of the used-car industry, according to Black Book. For the first week since the beginning of 2009, all 10 car segments went up in value, as did 12 of the 14 truck segments.
“As sellers in wholesale venues, your returns and conversion rates continue to be strong. As buyers, your continued concerns about how much you must pay is playing a significant part in filling the holes in your inventory,” said Ricky Beggs, VP and managing editor at Black Book in a recent “Beggs on the Market” report.
“Over the past week I have talked with dealers from many parts of the country about these topics. Some are concerned if they pay these strong amounts, what will they do if 30-45 days from now, the historical ‘end of summer weakening’ appears?” commented Beggs.
According to Beggs, since the first talk of possible bankruptcy by Chrysler and General Motors, we have been focused on the effects of these actions on the products from these manufacturers and their brands. “From early on we have reported no difference in the trends from those in court-directed operations versus those from manufacturers still independently conducting business.”
Beggs had some information pulled to see and show the trends in the market for some various brands. Of the 13 brands included in the comparison, eight have been on the positive direction in value changes from April 1 through the end of June. Four of the eight were non-bankrupt brands while four are from those affected manufacturers, but still doing very well.
“An interesting note is that the eight on the positive side, all have a significant piece of their business in trucks, CUVs, and SUVs,” commented Beggs.