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Hello and welcome to this week's edition of Beggs on the Used Car Market, with used car highlights from Black Book. The experienced editors at Black Book have been busy making all the necessary changes to the values. Since the first of February we have averaged 1820 adjustments per day with the lowest daily average during any one week being 1619. This past week the 2150 adjustments per day was the second highest level since the week ending December 13, 2013, which was the peak level for the past year at 2380 per day. The difference between the two most active high water mark weeks was that in last December only 27% of the adjustments were increases, and this past week at 56%, you are able to see not only the tremendous activity, but the overall strength in the market.
Another sign of a very active market was when four segments came in with over 30% of all models within those specific segments being increasing adjustments, led by the 46% of the Entry Level Cars. Counting all adjustments, increases and decreases, the Entry Level Cars segment had 62% of all models adjusted. This was only topped by the 63% of all Full-size Pickups being adjusted, including increases and decreases. All told, eight of the twenty-four segments tracked and reported by Black Book had at least 40% of the vehicles listed in those segments adjusted. What an active and moving market.
Let’s take a look at how the various segments average price changed for the week. The overall average change for the cars of -$18 was a greater decline than one year ago when it was -$8, and was also the lowest declining amount since the week ending April 26, 2013 when the price decline was -$14.
For three consecutive weeks the Entry Level Cars, the Entry Mid-size Cars and the Upper Mid-size Cars have had weekly increasing changes. Each of these three segments was also weekly increases for the year ago period.
The truck segments now have consecutive -$10 average weekly segment changes, and very close to the year ago level change of -$7. This past week six truck segments had increasing weekly changes with only the Compact Crossovers having back to back weekly increases. One year ago there were also six increasing segments of which the Compact Crossovers were increases then as well.
Often times we see and talk about seasonality within the market. If there is one point in time each year that is a constant in movement direction and amount, it has to be the current “tax season” market. The results of the market this past week are so similar to the level of changes one year ago.
I know there continues to be blasts of cold weather in many parts of the country, but here in the Southeast there are very small signs of spring about to blossom. Daylight saving time has brought us longer evening hours of sunlight, which often keep the “open” sign on the showroom door longer each day. This might be what keeps the tax season going and even more activity within the new car markets.
We will be back on the auction lanes this week to see if the market strength continues. And if this next week tracks similar to year ago levels the market will react even better. Hopefully you will tune back in next week for the latest market results and comparisons. March madness is happening in the lanes as well as the hard courts.
Have a great week!