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Used Vehicle Prices Continue To Drop Across Many Segments
Black Book editors and survey personnel continued their auction attendance gathering current market data and insight from all across the country, enabling us to make the most accurate and current Daily adjustments to the published values.
Gas prices continue to climb, this past week up another $.02 to a national average of $3.74 per gallon. The comments and ultimate effects on the market do not follow the traditional expected pattern. It was brought up numerous times during the IARA round table events. The consensus is that even though prices continue to climb, and is now $.16 higher than one year ago, the steady slope up is smoother right now, while the current level is still well below the record $4.11 of 2008 and also below that mental mark of $4.00. We are not at a level that is causing an overreaction or major change in current buying habits and car selection on the retail side.
Let’s now take a more detailed look at changes in the values over the past week.
There was plenty of activity as just under 2000 vehicles were adjusted each day throughout the week. The average segment change for both the cars and the trucks, at -$69 and -$55 respectively was the greatest decline since back in the week of October 28, 2011 for the cars and for the past 5 weeks for the trucks. At the same time the 21% of adjustments that were increases was the highest increasing percent over the past 7 weeks. So if something is in more positive demand and thus value, it was reflected in a smaller increase.
The higher-end luxury models continue to have greater dollar movement as the Prestige Luxury Cars (PLC) and the Premium Sporty Cars (PSC) again both declined over $100. The Near Luxury Cars (NLC) were not far behind at -$98. One of the more fuel efficient segments, the Entry Mid-size Cars (EMC), also declined $98 or -1.19% for the week. The Entry Level Cars (ELC) reacted in a steadier manner this past week at -$14 or -.20%. The previous 3 weeks these small cars had been at a -3Ž4% of more weekly decline.
On the truck, van and utility side of the market the Full-size SUVs (FSU) took the largest turn south at a -$118 change for the week. These were followed by the Full-size Crossovers (FXU) at -$103, and not too much less, the Luxury SUVs (LSU) at -$85. Even though vacation season is basically over the minivan models showed the most stability at just -$7 for the cargo versions and -$10 for the passenger variants.
A year ago the average truck segment change was -$42 with the Full-size Crossovers reacting very similar to this past week, at a -$140 change, while the Full-size SUVs were down by only $10 and the Luxury SUVs were right at the truck segment average level as were the Minivans at about a -$43 change.