GAINESVILLE, GA – The spring market has announced its presence, bringing with it increases at 41 percent this week and the highest daily vehicle volume adjustments since March 15, 2010, according to Ricky Beggs, VP and managing editor for Black Book.
“With almost 2,100 vehicles adjusted per day, the peak was at almost 3,000 one day, and a low volume of a little more than 1,200 on another day. There were a few vehicles that were adjusted twice during the week,” Beggs said in his latest “Beggs on the Market” video.
The average price of car segments decreased by only $11 for the second consecutive week. “While the cars were more stable than the trucks, they were getting most of the attention on the lanes and comments from the dealers. Five of the ten car segments increased in average value this week, with four of those increasing each of the two previous weeks,” Beggs said.
Entry mid-size cars (at $29) and entry-level and compact cars (at $22 each) were the three leading segments in level of increasing values. Upper mid-size cars up $6 and full-size cars increased $3 also got “lots of attention” and brought in “good money,” he noted.
Meanwhile, trucks didn’t fare as well as the cars overall, or compared to the previous week’s level of change, Beggs reported. As a whole, trucks declined by $18 this past week versus -$16 the prior week and the -$11 of the cars. The largest increase of any segment was $18 for compact SUVs. Full-size pickups experienced more volatility, down $136 for the week with the other softer models being the full-size SUVs at -$33, full-size crossovers at -$27, and full-size cargo vans declining by $25.
According to Beggs, factors driving the changes in market values include:
- Supply. Supply continues to be an issue as many commercial remarketers are extremely low on vehicles, especially repossessions, and end-of-term lease units. Many trade-ins are being kept for retail inventory and not being wholesaled at the auctions.
- Season. The spring market has arrived now that most of the country has weathered the snow and ice storms and bitter cold temperatures that at one point had deposited the white fluffy flakes in 49 of the 50 states. Once this passed, the retail activity increased with a little pent-up demand driving some of the market.
- Market. The most recent market has raised interest and demand for almost all cars and especially those with higher mpg levels.
Many Black Book survey personnel reported similar findings, with almost all citing comments focused around “fewer no sales”, “strong activity”, “high demand for small cars”, and “small cars are very popular,” Beggs said.