GAINESVILLE, GA – This past week marked the 62nd annual National Auto Auction Association (NAAA) Conference. One committee within the NAAA, the Standards Committee, has worked throughout the year to add consistency to many phases of the remarketing industry, according to Ricky Beggs, VP and managing editor for Black Book. From past years, the committee adopted a standard grading and condition scale, which Black Book recognizes by publishing four different condition values. This year, the adoption of three specific wholesale certification levels for the industry, and especially the many commercial consignors was approved. This is a very positive step to give the buyers a level of confidence on vehicles from these consignors. Thank you to Bob McConkey and the standards committee for their efforts.
Black Book also congratulates Dave Angelicchio for a great year as President of NAAA and looks forward to working with Jay Cadigan as he starts his term as President.
“Throughout the week I was asked many times how the market is doing and what we expect for the rest of the year,” said Beggs. “This past week, as the Black Book survey personnel reported the auction activity and the Editors attended several auctions, there was a consistent feeling of a slight increase in the number of no sales both in the dealer consigned lanes and now even into some of the commercial accounts.”
Comments from buying dealers are a feeling of hesitancy to speculate and build up inventory at this time, noted Beggs. “They will step up for an immediate sale or inventory need. The biggest reason for this action reflects the thinking of a potential seasonal market adjustment possibility and not wanting to get caught with overpriced inventory. I’m not so sure we will see a significant adjustment due to the still constrained supply in the market of used vehicles,” he stated.
The adjustments made this week included a surprising 45-percent of the adjustments being increases, and was reflective of an average of 1,173 vehicles being adjusted each day throughout the week, Beggs reported.
The overall price of the cars fell $40 this past week which is pretty consistent with the previous week’s change of -$39. The segments with the best retention were Compact Cars (SCC) -$7 and Entry Mid-size Cars (EMC) -$9. For five of the last six weeks the Premium Sporty Cars (PSC) have had the largest change in value, this week going down $125.
The truck market had the best retention since the week ending July 2, 2010 as its average value declined only $13. Three of the truck segments increased with the Compact SUVs (CSU) going up $50, the Full-sized Passenger Vans (FSW) going up $35 and the Full-sized Cargo Vans (FVC) going up $24. The Luxury SUVs (LSU) down $70, have been the largest decline in average value for three weeks running now. They were followed by the Full-sized Crossovers (FXU) which went down $46.