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Here is the latest used car market report from Ricky Beggs and Black Book. If the overall auction activity is an indication there were plenty of empty holes to fill back at the lot. Even with several survey personnel and editor reports indicating the “best crowd in several months”, bidding just to be the last bidder at any price was not the case. Quite a few reports indicated buyers were “slightly selective”. There were two other multiple mentioned comments from the Black Book survey personnel. One was mentioning a shortage of cars and the other was there being very few cars with good mileage from which to choose.
After looking at thousands of auction based transactions throughout the past week, even with all of the activity, only 14% of all adjustments made were increases in value. The period covering the past seven weeks averaged 25% being increases, thus supporting the comment of “not bidding just to be the last bidder”. The holiday week may have been the driving factor as the last week where the tally was so low on increasing adjustments was the week ending July 13, 2012, a full year ago.
The overall average segment change within the cars improved week over week and also compared to the year ago period. Within the cars the overall change of -$35 had five of the ten car segments that were smaller declining levels than the prior week, thus the better change level overall.
The dollar variance range was one of the closer levels I can ever remember seeing going from -$18 for the Near Luxury Cars to the largest declining segment, the Luxury Level Cars, at -$51. With an average car segment percentage change of only -.25%, that is well below normal pre-recession levels.
For the past six weeks the trucks are requiring more adjustments and also more downward movement than the cars. The -$54 average segment change this past week is also the largest weekly decline since the weekly change amount for the week ending November 16, 2012, which was at -$65. One year ago the trucks adjusted by -$58, so today’s market is very similar. The Full-size Vans, after being so strong during April and May, are now being the softest segments over the past few weeks. So what goes up must eventually come down.
On a more positive and stable market, half of the truck segments had a percentage depreciation change less than the average car segment change, which I had related to earlier as being below normal pre-recession levels. The Compact SUVs which had increased three of the four previous weeks came in at no change this past week. The Mid-size Pickups, which had softened the previous four weeks returned to a very small change of only -$3 for this past week.
As we are digging through the data, there are more 2013s coming into the wholesale market channels. Our editors continue to find market driven data to place values on some less than high volume models and specific trim levels. Another dozen are valued this week following ten from the previous holiday shortened week.
It is the time of the year we are seeing special event and dealer appreciation sales at many auctions across the country. From the DAA Northwest Rock N Roll sale this week to the Brasher’s Sacramento Corn Roast Sale next week on the west coast to the Carolina Christmas in July sale last week and the Greensboro Auto Auction Classic Car Auction and Carolina Auto Auction Classic Sale in a couple of weeks in the eastern part of the country, opportunities for profit are part of the festivities. Hopefully we will see you at one or more of these great auctions.