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Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight from the auction lanes. Click here to download the full report.
The Black Book Market Insights report this week looks at the continued effects the price of gas is having on smaller cars and entry-level cars, which are showing some of the largest declines of the year. Interestingly, even though diesel prices also remain low, it is not having a similar impact on diesel trucks. Dealer sentiment from around the country is also pointing toward an escalating view of lowered prices at auction in an effort to reduce inventory levels.
“Gas prices decreased again this week, which will continue to push entry level car values downward. The same can be said for diesel prices at the pump, but diesel trucks still continue to do well on the block,” said Anil Goyal, Vice President of Automotive Valuation and Analytics.
Specialty Markets Report
Collectible Cars: Barrett-Jackson’s recent Las Vegas sale was a success, achieving a 98% sell through rate (the industry norm is roughly 50-60%). Total sales came in at an impressive $27,000,000.
Recreational Vehicles: Once again, for the seventh month is a row, the values of motorized and towable units have moved in different directions, with Motor Homes inching up 1.1%, while Towables declined a more significant 7.8%. As the weather turns colder, we expect to see both volume and bidding activity at the wholesale auctions drop off.
Powersports: Nearly all segments in the Powersports market see significant declines this month, and while the price drops are a little larger than usual, they are normal for the time of year as dealers draw down inventory heading towards winter.
Heavy-Duty Trucks: Right now used late model over the road and regional tractors are being purchased at auction for far less $ than a month or two ago, and buyers big and small are taking advantage of the situation.
Medium-Duty Trucks: In October we saw the Medium Duty segment take a much steeper downturn.