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Used Vehicle Value Changes Week Of Sept. 13
Here are the latest wholesale price changes according to Black Book analyst Ricky Beggs. From all the data we analyzed during the week, the effects of continuing climbing gas and diesel prices at the pump, that has now reached a point that is higher than any time since back in the week of April 23, 2012, has given us some surprising changes within the market.
The overall car segment average change increased slightly this past week to -$66 or -.42%. And even as gas increases, the Entry Level Cars (ELC) had the largest percentage decline of all 10 car segments at -1.17%, followed by the Entry Mid-size Cars (EMC) at -.64%. In dollar changes, the Prestige Luxury Cars (PLC) continue to adjust downward the most in the market for the fourth consecutive week. This past week it was -$135.
The 14 truck segments actually fared better this past week than the prior week declining by $48 as compared to the -$53 the previous week. With all 14 segments declining for the week, the retention was still better than the previous week as 9 segments had smaller declines. Mid-size Pickups (MPT) lead the retention with a change of only -$6. Passenger Minivans (MVW) at -$22 and Compact Pickups (CPT) at -$23 were not far behind in their change level. The largest declining segments consisted of the -$106 for the Luxury SUVs (LSU), -$84 for the Full-size Passenger Vans (FVW) and -$70 on the Full-size SUVs (FSU).
Each week Black Book has representatives at 62 physical auction locations. We take this data, along with thousands of additional records received electronically, to report the market as it changes. Under circumstances in past years, as gas prices increased, the more fuel efficient car and truck models would have increased in value as the price at the pump would go up, while the less fuel efficient trucks would have been the larger declining models. So without analyzing the actual auction data, and reporting the market as it happens, the perception and ultimate changes would have been different than actually occurred these past few weeks.
As you have watched these thoughts on the market and seen some of the charts showing the market changes, we have modified this week’s charts to highlight more specific segment changes along with the overall average segment change. This gives you a less jumbled look, as this improvement is a result of a viewer’s feedback. We hope this gives everyone a better view and understanding of the recent changes.
So as the lenders continue to be more active and aggressive in their retail lending, from prime to sub-prime and even to BHPH, leasing, in relation to more lenders offering programs and in market penetration, is making a steady comeback helping to support new car sales, and we are now having more trade-ins showing up in the wholesale market. So with this increasing support within the market we will be back on the auction lanes again this week in order to accurately report the market on a Daily basis.