GAINESVILLE, GA - Black Book continues to see an increasing level of no auction sales overall. But, not every sale or every seller is seeing the same result, according to Ricky Beggs, VP and managing editor for Black Book.
"One commercial account representative indicated a pretty strong 60 percent sales conversion early in the week to only follow-up with a meager success of only 10 percent a couple of days later," Beggs said. "Even when the final bid and asking price weren’t close enough to initially complete the sale there were instances where the auctioneer worked overtime and was able to get the seller and interested buyer together and complete the deal before leaving the block. Within the current less aggressive market, those vehicles with various announcements scattered potential buyers which didn’t help add to the sales conversion levels."
Another area of the market that has struggled recently has been most all of the 2012 and 2011 models being offered for sale. "The traditional days of old when the end of model year incentives would appear, might still be a memory in many of today’s buyers’ minds," according to Beggs. "This year, with new car days’ supply at very manageable levels and a different build mentality and capability being presented by most every manufacturer, I don’t see this being as major a concern heading into the fall and new model introduction this time around. But at the same time there has to be a reasonable spread in value between the coming new model year and the existing one- and two-year-old used models."
Auction activity over the past week was pretty substantial, with just over 2,300 vehicles adjusted each day throughout the week according to Black Book. "From all of these adjustments, we had only 16.7 percent that were increases, very similar to the 16 percent and 10 percent of the previous two weeks," Beggs said.
All 10 car segments declined this past week with an average of -$36 per segment or -0.27 percent. "This was not that much more than the previous week, but it was the largest decline since the week ending Feb 3, 2012, just before the start of the increasing market we had through the middle of May," Beggs said. "The lone increasing car segment from the previous week, the Premium Sporty Cars (PSC) was the largest declining car segment this week at -$71 or -0.19 percent."
Looking at the more stable segments for the week the Entry Sporty Cars (ESC) at only -$22 of -0.15 percent were slightly better than the Entry Mid-size Cars (EMC) and the Full-size Cars (FSC) at -$28 and -$30 respectively.
The truck segments all declined for the third consecutive week with the average segment change of -$62 or -0.48%. The -$62 change was only $2 more than the previous week’s -$60.This most recent change was also the largest average segment change since the week ending September 16, 2011.
"There were some specific types with what I would call small downward movement. The most stable was the Mid-size Pickups (MPT) at -$19 or -0.15 percent and the Compact SUVs (CSU) at -$27 or -0.27 percent," Beggs said. "A similar segment, the Compact Crossovers (CXU) declined only $10 more than the Compact SUVs at -$37. For the slightly larger Mid-size Crossovers (MXU), this segment declined by a significant -$115. All told it was an interesting number and amount of changes for the week."
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