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Saturday, June 1, 2013

Used Car Market Takes Decline As Late Spring Approaches

Used Car Market Takes Decline As Late Spring Approaches - Automotive Digital Marketing Professional Community

Used Car Market Takes Decline As Late Spring Approaches

Here is the latest used car market report from Black Book and Ricky Beggs. The car market average segment change was right in line with the previous four weeks at -$43. The segment with the smallest depreciating change for the week was the Near Luxury Cars at -$25. This segment was the second smallest percentage change at -.22% just behind the Premium Sporty Cars which finished the week at -.11% and -$40. The Entry Mid-size Cars and the Upper Mid-size Cars are not getting the special attention in the market right now as their level of change over the past three to four weeks is right at the top of the segment changes in their amount of decline. The trucks are faring better overall than the cars, but this past week, at -$36 is not far behind the cars. At least there were two segments that increased for the week, the Mid-size Pickups at +$24 and the Cargo Minivans at +$3. Although at a declining level for the second week in a row, the Full-size Pickups are still maintaining a pretty strong presence in the market. Even though they have declined for four of the past five weeks, the declining levels have all been single digit changes. No other truck related segment has had the strength over the past 12 weeks of the Full-size Pickups, other than the Mid-size Pickups. As we look at the market movement, at 28%, we had the lowest percentage of adjustments that were increases since the week ending January 4, 2013. Where I had previously mentioned the strength in some of the truck segments, 60% of all adjustments were within the trucks and where the cars only had 14% of their adjustments as increases; the trucks were much stronger at 36% of the adjustments being increases to the previously published value. Housing growth, an overall improving economy, and now the additional need around the Oklahoma City area for cleanup and ultimately reconstruction, continue to be the primary drivers in making the trucks better than the cars. With no sales still mentioned in many reports, the ex-rental cars continuing to be off in demand, and more interest for three- to five- year old vehicles, we expect the market to continue to adjust in a manner preparing for another model year to enter the market come August and September. As we get ready to analyze the market data for this week of May 28, there are two general trends we expect to appear. One, this is the last week of the month and two, Wednesday through Friday represent a fifth week of the month sale opportunities. Often this brings a void of some commercial account sellers getting out of the first and third or second and fourth weeks running cadence, limiting the typical offerings at some auctions.

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