GAINESVILLE, GA - There was a little uptick for both cars and trucks in the auction lanes, resulting in the overall change for each group to be more solid and stable as the average change was a smaller decline week-over-week, according to Black Book.
The last time the cars had a change as small as only -$25 was the week ending July 15, 2011. For the trucks the change of -$3 had not be bested since the week ending April 29, 2011, when the change was actually an increase of $7.
"The market continues to be very active even though we are getting a few reports of lower percentage conversions in some areas," noted Ricky Beggs, VP and managing editor for Black Book. "The market values did require the editors to make a pretty strong number of adjustments this past week."
With an average change of just over 2,300 vehicles per day, that was an increase of about 1,000 per day more than the previous week. Overall of all the changes, about 46 percent were increases to the previously published values this past week.
"The mix and volume of vehicles plays a significant part in actual retention. In many popular commercial type vehicles, both cars and utility models, where there is a good supply crossing the block, dealers are being a little more selective in what they are bidding on and how much they are willing to bid," Beggs said. "They might also punish the vehicle value when the miles get a little edgy for the age of the vehicle. That's ample reason not to benchmark everything off of Average Condition."
Recent analysis has also shown interest and demand overall for hybrid type units is not at a major premium. When looking at new unit sales the percentage of vehicles sold with hybrid or electric only power plants is just over 2 percent of the volume, according to Black Book. On the used side the value benefit is ok until the mileage mounts up. Then the reaction reflected in the bid levels within the market changes.
Within the car segments, the Entry Level Cars (ELC) increased in value for the third consecutive week. While it was the only car segment type to improve to a plus change, the Prestige Level Cars (PLC) and the Premium Sporty Cars (PSC), which often fluctuate by $100 or more, were only -$62 and -$55 respectively this week. The other strong segments were the Entry Mid-size Cars (EMC) at -$9 and the Compact Cars (SCC) at -$11. Note the better retention units this week within the cars are from the smaller more fuel efficient models.
The truck segments continue to have more models with increasing values, with four segments going up, but only the Mid-size Pickups (MPT) has increased for 2 consecutive weeks, at +$13. The Mid-size SUVs had the largest decline, but only at -$23 for the week.