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As the Black Book Editors commented on their auction attendance, lane activity and viewing of online auctions, it became obvious that the adjusted values would confirm a softer market than the previous few weeks. There were mentions of fewer dealers in attendance and in many instances, softer values and lower conversion rates. A couple of commercial accounts with higher conversions offset the broader lower conversion rates. These are primarily accounts that have inventory in the pipeline that will need to be sold next week.
Car And Truck Segments
The car segments, at an average segment change of -$57 or -.42% is the largest declining level since back in the winter months when we had a change of -$64 for the week ending January 18, 2013. A note of interest in the level of percentage change brought us half of the car segments declining by more than -.54%. If this pattern continues for the full month we would have depreciation ranging from -2.16% to -3.64%, much larger than the traditional monthly depreciation rates typically seen. All of the segments declining more than -.54% during the week fit into the more fuel efficient models. As we look at the current average price at the pump for gas at $3.56, dropping $.07 week over week, and also $.16 less than a year ago levels, the price at the pump seems to be more detrimental to the smaller cars and the more fuel efficient trucks and utilities. A year ago with gas $.16 higher and six segments at -.5% or more change and the overall change average at $-63, only four of the segments were more fuel efficient related.
The average truck segment change came in at an identical-to-the-cars-change level at -.42% but a slightly lower -$53. Just like the cars, the five truck segments with a larger than -.5% change were also some of the more fuel efficient type segments. A year ago the truck change was less at -$44 and the better change level segments were the Compact Pickups at -$6, the Passenger Minivans at -$13 and the mid-size Crossovers at -$22, with only three segments at greater than -.5% decline, all within the -.72% and -.76%.
The used car industry and dealer inventory management is made possible due to the tremendous facilities, first class and focused services and the dedicated people who are part of the National Auto Auction Association. This week we are celebrating with and honoring the auction industry as part of National Auto Auction Week across the country. Make sure to attend your local auction, buy or sell a car or two and express your appreciation to the auction team for their efforts. You can rest assured that you will see the Black Book team of Editors and survey personnel on the lanes gathering data and market insight while also supporting the auction processes. Have a great week.