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New Mid-Size Models Will Likely Impact Used Car Values
Here are the latest used-car pricing trends from Ricky Beggs, senior analyst at Black Book. One of those major refreshes we at Black Book have recently had a chance to see first- hand comes from the normally less than exciting mid-size car segment. Don’t just overlook the sedans of the mid-size car segment anymore as these are currently getting a major makeover right now. All the major players in this segment grouping have or will be major transformations by the time the 2013 versions hit the market this fall. The Ford Fusion is the most recent model within the more bland mid-size segment trying to change the impressions most consumers of these sedans and these models will be seen very soon on the dealer lots.
Fuel prices continue to rise, this past Monday to a national average of $3.78 per gallon and by the end of the week to $3.80 nationwide. In the southeast the jump was a solid $.15 increase in anticipation of Mr. Isaac causing havoc in the Gulf. The only positive is for those pumping diesel fuel instead of gas; in our area it is now basically matching the price of regular grade gas.
Over all the market is declining even though a few models are getting positive adjustments as 29% of the changes this past week are increases to the values. There were no total segments with positive change levels even though the Full-size Crossovers (FXU) only declined by -$6 , the Compact SUVs (CSU) by -$5, and the Compact Pickups by -$13. Due to the Full-size Vans and Wagons declining by -$122 and -$132 respectively and the Luxury SUVs (LSU) by -$94, the average truck segment change was still at the -$53 level, which is very close to the level of truck changes over the past 3 months.
We continue to look for any effects in the purchasing habits of the dealers that could be reflective of the higher gas prices. The Full-size Pickups (FPT) and the Full-size SUVs (FSU) along with the Mid-size Pickups all held better change amounts than the overall segment change level.
The car segments are giving us a larger declining level overall when compared to the trucks. The major driver continues to be the change within the Prestige Luxury Cars (PLC), down by -$139 this past week. This is the third consecutive week of over -$100 decline for this segment type. The changes within the smaller cars, those you expect to be the fuel economy leaders, the Entry Level Cars (ELC), changed by -.89% or a -$60 change followed by the -.64% adjustment with the Compact Cars (SCC), bucking the trend of increasing gas prices.
As we move into another week of auction activity there are a couple of areas to keep a keen focus on. One is the increasing number of dealer cars coming into the wholesale marketplace. In more specific insight, keep an eye open to seeing more 5-8 year old vehicles pushing that 150,000-plus mileage threshold. The trade-ins are getting older and those aren’t the best franchised dealer inventory pieces. The one issue that was mentioned the most and by numerous of the Black Book survey personnel reports was in relation to the dislike and concern about the number of high mileage units and the lower interest by the buyers for these vehicles. On the opposite end would be the late-model one and two-year old off rental units. With the 2013s appearing in more adequate volumes, the replacing of the rental inventories has officially begun.