GAINESVILLE, GA – according to Ricky Beggs, VP and managing editor of Black Book, gasoline prices at the pump made the biggest week over week change over the last week, dropping $0.13, since the $0.14 increase after the final week in July. The low price during the last year was $3.23, a full $0.46 less than last week’s price.
With the volatility in the gasoline market, is there a direct correlation of gasoline prices to the market value changes? “The average segment change for the cars was a slightly larger decline at -$68 than the week before at -$67,” Beggs said. “The truck segment change improved to -$53, $5 better than the -$58 adjustment the prior week. These results are contrary to common sense when fuel economy is considered. A year ago, with gas at $3.46 a gallon, $0.22 less than this year, the cars average segment change was at -$75, $7 worse than this year, while the trucks were $10 better a year ago.”
In his analysis of cars, trucks, and other vehicle segments for the past month, Beggs found that the full-size car (FSC) segment had larger declines progressively for the past 5 weeks. “It started at -$25 for the week ending September 28 and finished this past week at -$70,” Beggs said. “Within the trucks the same scenario is present for the mid-size crossovers (MXU). At -$17 for the week ending September 28, they depreciated more each of the next 4 weeks to -$61, -$86 to -$104 and finishing this past week at -$131. With these trends, keep in mind we are deep into the fall of the year when the market should be adjusting downward.”
However, Beggs noted that full-size SUVs (FSU) seem to be bucking the downward, year-end trend. “At -$74 for the week ending October 5th, the changes improved to -$58, then -$51 and this past week at -$48,” he said.