Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders
Here is the most recent used car market report from Ricky Beggs and Black Book. A few months back we talked about the effects on the used auction activity, especially on the physical lanes, when we have a fifth week of the month of auctions. While attending a manufacturer related meeting this past week I had a remarketer say the reason for more no sales during this past week was due to the extra week of activity for the month. We did have several survey reports referring to a lower level of excitement overall on the lanes. Another report described the activity as “wait and see”. This was on top of the continuing lower conversion rates on many late model units, especially within the cars.
As the final weekly adjustment report was tallied we found the truck segments still holding the line with only a minimal -$1 overall change even though there were positive changes on six of the 14 truck segments, led by the Compact SUVs at +$51 and the Mid-size SUVs at +$20. In addition to the six increasing segments, five additional segments declined by single digits.
The cars continue to soften, and based on the activity with the late model units, which a good portion are from rental fleets, for the second consecutive week no car segments increased and only one segment had a single digit decline, the Entry Sporty Cars at -$9. With the overall car segment change of -$39, we have the largest declining level since the week ending February 1, 2013. Another interesting note is that all ten car segments declined by a larger amount than the week before. Is this a sign of the end of the spring market with the softening starting a little earlier than expected?
Of all the changes made by the Editors this past week, a solid 54% were increases. The interesting note about the positive adjustments is that the volume of increasing adjustments within the truck segments and models was over four times the level of the cars.
As we looked for the strength and stability within the market, all three of the pickup segments, along with both compact utility segments stood out with their trending patterns. Over the past ten weeks each of these just mentioned segments have either increased in value, or when depreciating week over week, the level of decline was limited to single digit levels. We feel functionality is the driver behind the interest and retention levels of these type vehicles. Several of these segments are mirroring similar sales trends as new models.