GAINESVILLE, GA - Last week in Black Book’s weekly video segment, Ricky Beggs, VP and managing editor reported there had been two consecutive weeks of fewer positive adjustments and questioned whether we were seeing a trend being established.
In the most recent market results, the direction of the market took a turn back to more positive values. The overall change for the almost 1,100 vehicles adjusted each day during the week by Black Book was just over -$29.00 as compared to -$87.00 for the previous week. “We also returned to a greater percentage of the adjustments being increases at 43 percent this past week,” said Beggs.
Both the total car and truck segments finished below the $0 baseline for the week but with a more positive trend as compared to the prior week, with the cars down $34 (as compared to -$46) and the trucks down $29 (as compared to -$41).
All 10 car segment types were down for the week. Only three, Compact Cars (SCC), Sporty Cars (ESC), and Entry Mid-size Cars (EMC) depreciated more last week than the prior week.
With three of the truck segment types being level or increasing in value for the most recent week, Full-size Pickup Trucks (FPT), Full-size Cargo Vans (FVC), and Full-size Passenger Wagons (FVW) were all decreasing levels for the prior week. A few segments, Minivan Wagons (MVW), Mid-size Crossovers (MXU), and Luxury SUVs (LSU) had greater depreciation for the most recent week than the prior week.
“There doesn’t seem to be a consistent pattern of strength or weakness in the market this past week,” said Beggs. “The comments from the dealers, auction personnel and Black Book survey personnel who cover over 55 auctions every week represented various trends as well. Some thought the market had strong prices, others said ‘it is off from the spring high’ while another said ‘prices weren’t crazy.’ ”
One trend that appeared from several parts of the country and multiple auction locations was that diesel pickups were getting stronger. For the second time in recent weeks, according to Black Book, Sr. Truck Editor, Kevin Giddens increased the ADD for diesel engines.
“We all know the right vehicle – Extra Clean condition, low miles, the one that catches everybody’s attention on the lot or on the lanes – will bring all the money. Another factor in a vehicle selling for top money is that it must be properly equipped,” explained Beggs.
In the southeast, gasoline prices at the pump continue to drop. “I know we can’t expect this to be the trend from now on but it is nice for now. We don’t see this being a driver of the used values or creating more or less interest on any particular segments at this point in time,” said Beggs.