GAINESVILLE, GA – As the first half of 2010 winds down and we head into summer, it is the typical time of the year for wholesale market values to begin heading downward, according to Ricky Beggs, VP & managing editor for Black Book. For used-vehicle values, the continued limited supply of used units has helped retention values, even for some of the higher mileage vehicles, maintain some almost unbelievable levels.
For 2008 models, year-over-year value changes effective June 1, 2010 showed only four of the 24 segment types increasing from June 1, 2009. This is one less segment type when looking at May 1, 2010 over May 1, 2009. The strongest segment consisted of mid-size pickups, which increased by 8 percent, or $1,120.
“Looking back over the last three months, 16 of the 24 segment types are up overall as compared to the three months ending May 31, 2010,” said Beggs. “The three-month segment increase came in at +0.85 percent. Narrowing the trending down even further to a monthly difference, 13 of the 24 segment types continued to increase in value as of June 1, 2010. In May 2010 there were 14 segments increasing, and on April 1, 2010, 15 segment types had increased. The overall monthly change was a miniscule +0.02 percent, or about $12.”
During the last monthly tracking period, the number of models increasing in value by $800 or more was made up mostly of SUV/CUV type models. Only two of the nine were car models – the Audi A8 and the Volvo S80, according to Black Book. For the monthly period ending May 1, 2010, seven models went up and six of the seven were SUV/CUV units. For vehicles that didn’t fare so well month over month, with depreciation of $800 or more, five of the nine were car models.
Domestic nameplates continued to have better three month trending, with domestic cars up 1.8 percent or +$263 and domestic trucks up 3.6 percent or +$601. Even the imports, with cars down 1.8 percent and the trucks down 0.2 percent, have had recent retention that is much better than historical trends, according to Beggs.
Month-over-month trending through June 1, 2010 had the import truck models overall showing the greatest increase, up 0.55 percent, as compared to +0.29 percent and +0.08 percent for domestic cars and domestic trucks respectively. The import cars, down -0.38 percent month-over-month, was only a -$82 change.
“All of the reported numbers indicate a very strong used market. Limited supply of used vehicles in the market, a continuing struggling economy with unemployment still at significant levels, and credit availability reflective of today’s economic levels, have many consumers still looking at used over new to fill their transportation needs, another factor in helping maintain used vehicle values during a typical time of deprecation,” said Beggs.