Professional Community for Car Dealers, Automotive Marketers and Sales Managers
Following is the latest used-car pricing trends from Black Book data and analysis. Week over week gas prices at the pump increased by $.03, with no detriment to the necessary changes to the vehicles of the truck segments. With many of the survey reports mentioning a market that is leveling off, it wasn’t so within the cars as the average segment change was jest less of a declining level at $87 as compared to the previous week’s -$94. These are the two largest declining segments amounts in more than a year.
The Premium Sporty Cars (PSC) at -$239 and the Prestige Luxury Cars (PLC) at -$114 continue to be the largest declining segments. The car segment making the biggest turnaround week over week other than the leading declining segments was with the Luxury Level Cars (LLC) which declining by $88 as compared to the -$135 the previous week. A year ago the cars were much more stable at an average segment change of -$49, with only one segment declining by more than $70 and that being the Premium Sporty Cars at -$104. This past week 7 car segments had larger than $80 declines.
As we often prefer to see consistency, while looking at which segment or segments have trended most like the overall average, the Entry Sporty Cars (ESC), at -$95 this week has trended most like the overall car segment average change over the past three months. The trend mirrors the overall change pattern while generally being just over the segment average with the greatest variance being the week ending August 30. When looking at the truck trends, other than the week ending July 20, the Compact Crossovers (CXU) most represents the average truck trend.
As we look at the trucks, the stability continues with 3 segments increasing for the week and another 5 segments that depreciated by less than .2% or less. The Mid-size Pickups (MPT) at +$24 and the Full-size Pickups (FPT) at +$16 were just ahead of the +$3 for the Compact Crossovers (CXU). A year ago there were no segments with positive adjustments although there were three that declined $6 or less for the week.
The 3 increasing truck segments were a force regarding the 42% of all adjustments that were increases during the past week.
Our outlook for the next couple of weeks is an active market with a similar number of changes compared to this past week. The trending should again see larger declines with the more luxury oriented models. We are also watching the late model vehicles as the lack of interest in the lanes for these could represent some relatively large negative adjustments.
Although gas prices rose as reported on September 17, by the end of last week the decline in pump prices had begun. There has to be a point where the market reacts to the lower prices and we’ll be the first to report this if and when it occurs.
As we head into a new week, there’s plenty of activity, as many dealers are looking for what best fits as their next best profit maker. We hope our thoughts today have provided a point of interest, support or raised a question that helps with you buying, selling, or financing decisions.