Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders
Where Are The Most Volatile Prices In The Auto Market?
How was the market this past week? When looking at the car segment activity from Black Book data, the overall segment average change increased over the previous week to -$70. Within the various segments, most were pretty similar to the week before except for the Entry Level Cars (ELC) which had been pretty solid for the previous two weeks but requiring adjustments this past week to -$82 or -1.24%. Only one other car segment had a greater dollar change with that being the Premium Sporty Cars (PSC) at -$161, the fifth consecutive week this segment has decline by $100 or more.
How did the cars fare as compared to the market a year ago? It was very close to this past week’s -$70 with an average segment change of -$72 last year.
The trucks continue to retain value better than the cars, but with a slightly larger decline of -$49 this past week as compared to 2 weeks ago when the movement was -$15. Just like the cars, the year ago average truck segment change at -$43 was very close to this past week’s change.
All of these adjustments were based on a solid number of 2137 vehicles adjusted on average each day throughout the week. Even with the overall declining amounts there were still 27% of the adjustments that required a raise in the previous published values.
We haven’t mentioned gas prices in a few weeks but for the past 3 weeks the average national price at the pump declined, this past week by $.02 to $3.80 per gallon. The last time the price was this low was the week of March 5, 2012. What were we paying almost a year ago? At the end of 2011 it was $3.26. I don’t see us dropping to that level at the end of 2012.
If you were looking for the segment types of cars and trucks that most steadily tracked as the overall segment change over the past 3 months you would have to look at the Entry Sporty Cars (ESC) and the Compact Crossovers (CXU). For those that trended most consistently above the segment averages those would be the Entry Level Cars (ELC) and the Compact Pickups (CPT).
If you are dealing with the most volatile segments in change week over week, keep your eyes on the vehicles in the Entry Level Cars, even though the ups and downs were still mostly above the overall segment change. On the trucks that volatility showed up in the Full-size SUVs (FSU).