Automotive Marketing Professional Community for Car Dealers and their Managers
Following the latest used car market report from Black Book. Over the past couple of weeks there have been a number of comments about this video market update and the information and insight it provides while at several auctions I have attended over the last couple of weeks and the past couple of days at the NADA Convention and Exposition in Orlando. Thank you for your comments.
There continues to be much talk on the lanes regarding the “spring market”and this being “tax time”. This year the electronic filing date was delayed about a week, thus the returns were a little slow flowing in. I have had several dealers say anxious buyers are now coming in with checks in hand. The demand apparently is carrying over to the lanes as most of the Black Book survey personnel mentioned in their auction summary reports that there was great activity, steady bidding, and prices that were mostly up. One report from North Carolina even termed it the “best sale in a long time”. The under $10,000 car is still grabbing all the attention. If you happen to be a seller, I am sure you have noticed it being a little more difficult to get the necessary money for the 2013s and the 2012s. From the buyer’s perspective, you have your price point set which isn’t enough to convince the seller to make a move. They will find their sweet spot in time.
Overall the actual results of a full week of market analysis, sure supports most of the comments from the survey personnel. We ended up with 41% of the adjustments being increases to the previously published values, the strongest point over the past 6 weeks. The overall average segment change on the cars at -$24 was the lowest declining weekly amount since the week ending May 11, 2012. Getting to the -$24 average segment change included increases of $8 and $5 on the Entry Level Cars (ELC) and the Full-size Cars (FSC), respectively. There were 4 more car segments that declined by -$20 or less for the week. Those were the Luxury Level Cars (LLC), the Upper Mid-size Cars (UMC), the Compact Cars (SCC) and the Entry Mid-size Cars (EMC). You could assume that spring time and tax time might be appearing on the cars.
The trucks took a slightly different turn this past week with the overall average segment change of -$33 being the largest declining level over the last 4 weeks when that amount averaged -$26. There were 6 segments that declined by less than $20 including the Compact Crossovers (CXU) at -$17 and the Mid-size Pickups (MPT) at -$16 and then all the way to the lowest declining segment of -$1 for the Full-size SUVs (FSU).
If you are driving a plug-in electric car, the fluctuation in the price of gas and diesel is probably putting a small smile on your face. In the most recent report the price of gas increased $.18 to $3.54, about $.06 higher than this time a year ago. Diesel increased by $.09 during the last week and topped out at $4.02. Diesel didn’t top the $4.00 level at the beginning of 2012 until the week of February 27.
Sometimes volatility can affect the best made plans. Looking at a truck related segment that over the past 3 months has been up and down and not in tune with the overall segment change levels is the Compact SUVs (CSU). This segment paints a pretty diverse pattern. It has had a couple of weeks of increasing values and also a couple of weeks with greater than -$40 weekly declines.