GAINESVILLE, GA – The clunkers-turned-junkers are all now parked on the back lots, side lots, and in some cases, on the main lot, waiting for the cash to arrive back at the dealership. New car inventory is almost non-existent — mirroring the customer traffic at the franchised dealers’ lots the first week of September. Now the focus and consumer interest is all turned back toward the used car market, according to Ricky Beggs, VP and managing editor at Black Book.
Weekly results showed increased daily adjustments with an average of 1,516 each day this past week as compared to 332 the previous week. Six of the 10 car segments Black Book tracks were up from the week before. Continuing the strength in the truck market, 10 of the 14 segments finished with a positive trend.
“One thing editors noticed during their analysis and while attending auctions was the strength in the extra clean and clean condition units as compared to the average and rough condition models,” noted Beggs.
With 53 percent of the adjusted Clean condition values showing an increase of almost $180 each, the almost opposite trend showed in the average condition values, with 52 percent of adjustments showing declines at a level of almost -$117. Daily movement was up almost $41 for clean condition, while being up only $17 for the Average condition models, according to Black Book.
“Many of viewers of our weekly video also deal in the specialty markets. The medium- and heavy-duty truck and commercial trailer market has also been affected by the weak economy,” said Beggs. “The current solid supply has caused all but the cleanest, lowest-mileage units to fall in retained value. These products are not impulse buys and the floor plan requirements are making buyers be more selective.”