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Here is the latest Used Car Market report from Black Book. The analyzed and adjusted used vehicle data published by Black Book is all based on the activity and market established by the member auctions of the NAAA. Black Book is fortunate to be a longtime supporter of the National Auto Auction Association, while also understanding the services they provide to the franchised and independent dealers as well as the commercial and financial remarketers. Our congratulations to Paul Lipps, this year’s outgoing president for a great year and we offer our support and congratulations to incoming president Jack Neshe.
On the final night of the convention two of the finest and dedicated auction personnel were inducted into the NAAA Hall of Fame. A great friend of Black Book, Mr. Henry Stanley, the President and owner of Carolina Auto Auction and Indiana Auto Auction, and a past president of the association, has been actively involved in NAAA while supporting many association members, for most of five decades. He also has several of his staff actively involved in the association.
An additional member was also inducted into the National Auto Auction Association Hall of Fame. Mr. Ken Osborn, general manager of ADESA Dallas, has been in the remarketing industry for over 30 years, and is also a past president of NAAA. He has worked tirelessly over the years for the betterment of the auction and remarketing industry. Black Book congratulates both of these great leaders and gentlemen on this recognition.
During the week in Indy, I was fortunate to talk with many auction personnel about their views of the market. I heard the enthusiasm regarding increasing consignment, a still solid market even during this fall season and also the mention of the much older and higher mileage cars being a tough sell.
Car & Truck Segments
The movement in the market for this week following a holiday had slightly lower declining levels. The average segment change for the cars was -$55 as compared to the previous week of -$61. The trucks had an even lower average change of -$37, from the previous week level of -$71. 12 of the 14 truck segments had better retention change levels this past week. Only the Compact SUVs and the Full-size Pickups trended the other way.
As we evaluated the adjustments, the percentage of all adjustments that were increases in value was the smallest level over the past year at only 12%. The average number of changes per day of 1465 was the lowest level since the previous holiday week of July 4, 2013. If seasonality transfers to the current year, the year ago volume of over 2000 daily changes for the next six weeks period will potentially bring us to increased adjustment activity this year.
We will also be keeping our eyes on the price of gas. There was an almost $.06 per gallon increase this past week. Keep in mind we are still $.23 better than a year ago.