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Here is this week's Used Car Market Report with analysis from Ricky Beggs and Black Book. Judging from the overall comments Black Book received this past week and the ultimate level of adjustments based on the auction results and data feed, every dealer must be extremely busy on the retail lots.
The auction activity has really picked up the last couple of weeks. From Florida and the comments of “strong with the older tax cars in demand” to the “2012s and older getting the real interest”, the report from the Colorado market reported “a strong market except for the 2013s and 2014s being off”. A little further west in Nevada we heard ”there is a major increase in buying and optimism”. As I was talking with an auction manager who was again getting pelted with more snow, 9 degrees of actual temperature and wind blowing about 25 mph, he said it was super-hot on the lanes with dedicated buyers in attendance and maybe their best sale of the year.
Taking a look at the actual results within the car segments the previously mentioned comments were of no exaggeration. The average car segment change of only -$19 hasn’t been this low since the week of April 26, 2013, when it was -$14. The two better retention segments of the prior week actually had positive changes this past week, the Entry Level Cars at +$6 and the Entry Mid-size Cars at +$7. A third segment, the Upper Mid-size Cars also increased this past week by $10. Needless to say the car market is on fire.
I must say the truck segments are also looking up as well, finishing at an average segment change of -$33, the best level of retention since back for the week ending May 17, 2013.
What stood out within the level of changes for the truck segments? Top of the list was the Full-size Crossovers at -$47. This is the best week for this segment over the past five weeks. The Compact Crossovers at -$16, is also a solid improvement and the best level for this segment type in over three months.
No matter how you look at the market, it is on the uptick. With forty-five percent of the adjustments being increases, if you need inventory get ready to step up to the plate and keep bidding. The last time we had that level of positive changes was a year ago for the week ending February 22, 2013. The following ten weeks, through the week ending May 3, 2013, the increasing adjustments were at even stronger levels. With potential changes occurring at that level and this often, the Black Book Digital mobile app gets you all these changes whether you are a buyer, seller, or a lender.
I’m looking forward to spending time with some of the finest remarketers in the industry at the Conference of Automotive Remarketing in conjunction with the spring IARA and NAAA meetings. I know I will pick up some tremendous insight to the market and remarketing industry. If you are there, slow me down and let’s talk about the market.
When we get back together here next week let’s hope the active market is continuing along the lines of what we just reported. Let’s hit the lanes! Have a great week.