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Here is this week's Used Car Market Report with the latest data from Black Book. Last week was a semi-short week as we all had the chance to remember and honor those who have served in the military. No matter where a holiday falls there is some effect on the rhythm of the auctions and buying and selling needs of the wholesale markets.
Overall the changes to the values were more stable with no extremes in the level of change. Even though there were comments within the Black Book survey personnel which indicated a “steady” and “flat” market, we received more comments about the increasing number of “no sales” than we have been seeing. There were a couple of reports that felt the “buyers were being more selective” causing the “sellers to be a little more flexible with their floors”. Another comment that appeared multiple times indicated the “later models were soft”. This might actually be the first signs of heading toward the fall and the market getting ready for another model year to enter into the choices.
This past week the average number of daily adjustments, at only 1390, was the lowest number since the 1239 per day for the week ending January 24th. Another indication of a slightly softening market came in the form of the number of adjustments that were increases coming in at only 38%, the lowest level since the 27% for the week ending February 21st.
Last week we mentioned some forecasts that felt gas prices would be declining. Well, that hasn’t happened as gas increased week over week but at least it was only by $.01 that puts us $.03 higher than the year ago period.
Let’s take a look at some of the specific results. The car market change has been more consistent coming in at an overall segment change average of -$44, the lowest level of change over the past four weeks which has an average change during that period of -$52.
Over the past three months we have mentioned many times the consistent strength of four specific segment types, the Entry Level Cars, the Compact Cars, along with the Entry Mid-sized Cars and the Upper Mid-size Cars. This was driven by their popularity within the tax season market. This past week these four segments joined the Premium Sporty Cars with the largest weekly declining dollar amounts.
The truck market overall continues to have less volatility than the cars coming in with an average segment change this past week of -$13. The two largest changes appeared within the Luxury SUVs at -$83 and the Full-size Crossovers at -$43. The Full-size Pickups at a +$14 change, have now shown week over week increasing changes for eleven consecutive weeks. The largest increase for the week was within the Mid-size Pickup segment coming in at +$40. Another couple of segments that are benefiting from the positive growth in the construction and service industries are the Full-size Vans which have both increased for the past eight weeks. Even the small volume Cargo Minivans are prospering with increasing values for the past 12 weeks, although the increase was only $4 this past week.
Each week there are generally segments that increase and others that decrease. If you are looking for a segment that has had the least level of change over the past month, that would be the Full-size SUVs. Their change level this past week was +$2 after a $1 increase the prior week and declines of only -$8 and -$12 three and four weeks ago.
Thank you for taking the time to join us for this video blog. We trust this insight into the recent market activity will give you some support in your business efforts. I welcome your comments and thoughts on the market, so give me a call or drop me an email. Or when you see one of the Editors or survey personnel on the auction lanes slow us down share your thoughts. Have a great day!