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Hello and welcome to this week’s Used Car Market Report from Black Book. Last week we reported how the market has been trending in a non-traditional December way. Little has changed this past week. Bidders are still pretty aggressive and the results were over 2250 vehicles adjusted on average each day of the week, with 52% being increasing adjustments of the previously published values. This is the largest percentage of increasing adjustments since the week ending May 2, 2014.
There are also models starting to show up in the market with enough volume to determine market based values for the first time. This week you will find fourteen models, and many with multiple trim levels, with their initial market driven values.
According to Black Book, there is consistency within the car segments with the average segment change of -$40 while the December average comes in at -$39. One year ago the cars had a -$40 change as well. Three of the four car segments with the lowest declining change are also the more fuel efficient models. This is contrary to the reaction one would expect as gas prices fell another $.12 this week to a national average at the pump of $2.55 per gallon. But overcoming the low gas prices can be related to the fact that these four segments are also the four with the lowest average segment price, and these fit well within the traditional seasonal strength of the first quarter of the year and the presence of “tax season”.
The trucks continue to hold their value with an average segment change of -$15 this past week and a December average of -$21. The difference in the trucks as compared to the cars is that there are truck segments actually increasing in values, where all car segments had declines, even if at very small levels. There were five truck segments increasing, led again by the pair of full-size van segments.
The next two weeks will present very limited wholesale market activity as auctions will be adjusting sale days, or even cancelling some auctions. Commercial accounts will be taking a break and the majority of the market will be focusing on retail activity.
Thanks for tuning in today and remember to tune in the next two weeks for the insight from the NAAA. We hope you have a happy holiday season and a blessed 2015.