GAINESVILLE, GA - The final quarter of 2012 has arrived and with this time of the year there are plenty of new 2013 models arriving at the franchised dealers’ lots. This also means the used late models may be getting some attention and bids, but probably at a less aggressive value level. Overall, according to VP and Managing Editor for Black Book, Ricky Beggs, the market traditionally begins a little steeper depreciation level than the rest of the year.
"As we look at the overall average segment change for the cars and trucks this traditional pattern has not yet begun to happen. As a matter of fact the movement is actually going in the other direction over the past 4 weeks," Beggs said. "I sure am glad we can, and do report the market as it happens every day instead of having to anticipate the market movement based on depreciation scales or once traditional change patterns."
Two and three weeks ago we had some pretty strong declining levels of change within the Premium Sporty Cars (PSC) and the Prestige Luxury Level Cars (PLC) leading to an overall car segment change level of -$87 two weeks ago and -$94 three weeks ago, according to Black Book. During that same period the more fuel efficient, smaller cars were also taking some of the larger changes, especially when looked at as percentage declines.
This past week the overall change was a smaller decline at -$64. And for the third consecutive week the Entry Level Cars (ELC) which changed by only -$4, had the best retention of all the car segments.
"This most recent adjustment was supportive of the comment from one of the Black Book survey personnel from Florida who said that both the older and smaller cars were in demand," Beggs noted. "Even though the Entry Mid-size Cars (EMC) are one of the more fuel efficient segments, this past week this segment had the largest depreciation at -$107 and also the largest percentage decline at -1.35 percent. For those of you who commented on the past significant change levels of the Premium Sporty Cars and the Prestige Luxury Cars, their level of change was much better at -$100 and -$91 respectively this past week."
As has been the case for the past 10 weeks, since the week ending July 20, 2012, the truck segments retention is still better than the cars. "The overall average segment change of -$15 or -0.11 percent is the best we have seen over the last 20 weeks, since the week ending May 11, 2012," Beggs noted. "This past week there were 4 segments with positive value changes, including all three pickup segments from full-size to compacts and also the Compact Crossovers (CXU)."
Supporting the importance and interest of the larger more spacious SUVs and Crossovers, the current supply in the market as new and used, currently has the level of change at -$39 for the Full-size SUVs, at -$32 for the Luxury SUVs (LSU) and the Full-size Crossovers (FXU) at -$33.
"The variance within the truck segments this past week was as consistent as I can recently remember, with no segment standing out of line from the overall group," Beggs said.
View the video of this weeks "Beggs on the Market," here: