GAINESVILLE, GA - This past week both the car and truck segments took a turn south in overall average change, according to Ricky Beggs, VP and managing editor at Black Book. "This was the first time in the past four weeks with no car segments increasing in the change amount. The best performing segments were the Entry Level Cars (ELC) declining by $7 and the Compact Cars (SCC) dropping by $8. We still had one truck segment increase for the last week with the Full-size SUVs (FSU) being up by $4. There were 5 truck segments that only declined single digits, led by the Full-size Crossovers (FXU) at -$2."
Even the largest declining segments were not at "fall off the table" amounts. The Luxury SUVs (LSU) and the Compact Crossovers (CXU), extreme opposites, changed by -$58 and -$53 respectively.
The 41-percent of the adjustments that were increases was the smallest percentage increases since the week ending January 6. "Of all the adjustments, the average change of -$52 was the largest decline since the last week of 2011," said Beggs.
All of these changes resulted from an average of 1405 vehicles adjusted each day - the second highest level since the week ending December 23.
"We can tell that the calendar has turned another year as this past week we placed market driven values on five 2012 models. Be looking for more of these 2012s with market driven values as they appear in the used market," Beggs said.
This past week both the car and truck segments took a turn south in overall average change. This was the first time in the past four weeks with no car segments increasing in the change amount.
Almost across the board, it's clear that tax season money is not appearing in full force yet. The tax cars are not always the front-line ready models. These truly front-line vehicles, whether tax season or not, that are in great condition with very good miles, are in demand and bringing solid money in relation to book values. These make up a large portion of the 41% of increasing adjustments. When two vehicles that are almost identical cross the block, one brings good money with multiple bidders going after the car. The other gets less attention and much less money, if it does actually sell. The difference is the excessive miles for the model year. There is also a resulting difference when there is an oversupply of a single model filling the auction pipelines.