Professional Community for Car Dealers, Marketing, Advertising and Sales Leaders
As you are watching this video several of the Black Book team are heading to or are already at the CAR/IARA/NAAA Conference in Las Vegas. What a great event to network with other remarketers, and to hear insight from the many informative sessions presented by industry leaders.
Next week several from our Lender Solutions team will be in Scottsdale for the CBA Conference. Some of the prime discussions will focus around LTVs, collateral and residual forecasts as well as the market trends.
So what happened within the auction lanes this past week? We are definitely in the midst of the spring market. We are dealing with the traditional first of the year gas price climb where the national price at the pump average has climbed by $.24 during February alone and $.48 since the calendar turned to 2013. Even with this climb we are only $.06 higher than the same week a year ago. At the end of last week, one of the busier local stations near our office had the price decline twice during one day, $.02 each time. This trend may be following the forecasts of OPIS for 2013. We will definitely stay focused on the pricing variations and the possible effects on the market values. Looking at the car segments there were three segments that increased in value for the week. Two of the three have increased for two weeks running, the Entry Level Cars and the Entry Mid-size Cars, up by $33 and $16 respectively. Any surprises that these are two of the three better fuel economy segments? As the Black Book survey personnel sent their reports in this past week several mentioned the strong interest in the mid and small cars, as well as the more fuel efficient cars being in demand. One described the market as “the market is up on 30 mpg cars”.
Overall the cars finished with the average segment change level at -$22, the second lowest declining amount since the week ending May 11, 2012.
The truck segments actually came in slightly better than the cars at -$19. There were four segments increasing and four more declining by -$20 or less for a relatively strong market this past week, the best in the past nine weeks. Of the four stronger than the previous week segments, the Compact SUVs increasing by $19 and the Mid-size Pickups at +$5 have now increased for three consecutive weeks.
All of the stability and strength in the market came from the fewest number of adjustments, at 1647 vehicles adjusted per day, during the month of February.
Several weeks ago we mentioned the end of the month market activity and values and how it differed from the earlier when there was a fifth week of the month. According to the results of the Editors’ market study this past week, it is obviously February doesn’t have a fifth week. As a survey summary report came out of Michigan reported, “the market was good for the last week of the month”.