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Here is this week's Used Car Market Report from Ricky Beggs, Editorial Director of Black Book. Everywhere I turned this past week I was being told of 70% to 80% sales conversions definitely indicating a booming market. One buyer even said the opening bid was many times higher than his planned top bid. And the actual 53% of the adjustments made being increases now represents three straight weeks of the best market activity and results since almost year-ago levels.
With all the activity, what are a few of the things that really stood out to the Black Book editors? To start with the three car segments that increased overall two weeks ago, the Upper Mid-size Cars, the Entry Mid-size Cars and the Entry Level Cars, all increased again this past week. They were also joined in the strength pattern by the Compact Cars with their +$10 increase this past week. Even the Full-size Cars are showing stability with only a -$7 downward change this past week. The Prestige Luxury Cars at -$201 this past week again lead the cars downward with the Premium Sporty Cars also pretty weak at -$107. But with the weather continuing to wreak havoc overall, we are sure not thinking about it being a sporty car market right now. The overall -$39 for the cars is greater than the prior week, but still the second lowest level weekly change since the week ending Dec 6, 2013, fourteen weeks ago.
The truck market continues to have lower weekly change levels coming in at -$10, a low point level we have not seen since the +$2 for the week ending May 10, 2013.
The five segments with increasing weekly change levels were led by the Full-size Vans – both cargo and passenger versions – as well as the Compact SUVs at +$47 and the Mid-size SUVs at +$1. Another sign of a positive moving market is that ten of the fourteen truck segments either were positive levels of change or the declining average segment change was a lesser decline than the prior week.
I was fortunate to be a part of the CAR/IARA/NAAA joint spring conference in Las Vegas. It all started for me by taking the time to monitor some of the test takers of the Certified Automotive Remarketer educational program. Two more industry professionals successfully completed all twenty modules of the program this past week. By the time the summer IARA Conference rolls around there should be a total of 100 CAR graduates of which all sixteen members of the Black Book Editorial team passed the course in 2013. The conference attendees were also mesmerized by the presentation from John King, longtime lead CNN reporter.
And speaking of graduates, the initial class of the Auction Academy, dubbed the Sons and Daughters Class, completed their two year program and officially walked across the stage and received their diplomas. These were some proud young leaders of the auction industry!
For all the three days of the conference, the upbeat attitude about the market was so prevalent from everyone, and rightfully so. The new technology that was discussed from the Autograde tools to multiplatform online offerings was discussed in the actual sessions and throughout the hallways and social gatherings. For sure, the industry is alive and prospering.
But now it is time to get back on the lanes and see how the market reacts this week. Let’s see how much strength remains. Have a great week!