GAINESVILLE, GA - Fuel prices are on the rise, and the recent increase in interest and market values on cars continued to be reflected in stronger, more active bidding, and in the end, higher sales prices, according to Ricky Beggs, VP and managing editor of Black Book.
"With nine of the 10 car segments going up in value for the week, the overall average price of the cars was up by $46, after a climb of $22 from the previous week," according to Beggs. "This week’s increase was the largest increase in the car segments in over a year. The only segment which dropped in value was a very small -$5 decline for the prestige luxury cars (PLC), and this was the smallest decline this year for that segment."
On the truck side of the business, seven of the 14 segments went up in value. "With all of the crossovers – the compact, mid-size and full-size – going up, we also had compact pickups (CPT) climbing in value, and a surprising +$37 increase on the Luxury SUVs (LSU). For the second consecutive week the largest decline in value within the truck segments was, as anticipated, the Full-size SUVs at -$74," said Beggs.
With more than 67 percent of the adjustments being increases in value, this was the largest percentage of positive adjustments since the week ending May 7, 2010, which completed a run where 8 of the previous 10 weeks’ adjustments ranged from 62 percent to a high of 86 percent being increases.
"Throughout the recent 2011 CAR Conference, comments were consistent as to the shortage of used-vehicle inventory and ultimately the need for more consignment at the auctions," said Beggs. "Based on end of term lease turn in volume throughout the next year, and the volume of new car sales, and ultimately trade-ins, this pattern of overall strong used values should continue through this year and into early 2013, as long as no unforeseen catastrophic issues raise their head."
"Congratulations to 'Coach' Ed Bobit, founder of the CAR Conference, for receiving the very prestigious NAAA Warren Young Fellowship Award," commented Beggs. "This is one of many industry awards presented during the conference that were received through hard work and consistent support of the remarketing industry. Gus Xamplas of the Donlen Corporation completed the testing requirements and became the 18th remarketing professional to complete the Certified Automotive Remarketer program that has been created and administered through IARA."
According to Beggs, there were some tremendous presentations from auction managers and owners, dealers, credit unions, fleet management companies, economists, and other industry specialists. And as always, the time to exchange ideas and experiences with industry associates is invaluable.