Used-Car Prices

Subcompact crossover values tumble

LAWRENCEVILLE, Ga. - 

For dealers who are finding used subcompact crossovers in demand at their stores, the latest analysis from Black Book showed they didn’t have to dip quite as much into their floor-plan funds last week to acquire these units.

This week’s Black Book Market Insights report showed subcompact crossovers depreciating the most out of cars and trucks. Editors pinpointed the decline at 1.18 percent.

Looking at volume-weighted information, Black Book reported that overall car segment values decreased by 0.63 percent last week, similar to the average weekly decrease of 0.61 percent in values registered during the previous four weeks.

Editors noticed the full-size car, subcompact car and sporty car segments decreased in value the most among all the car segments.

Again considering volume-weighted data, Black Book determined overall truck values (including pickups, SUVs and vans) softened by 0.39 percent last week, better than the average weekly decrease of 0.63 percent in values spotted during the previous four weeks.

Along with those subcompact crossovers, editors noted that the full-size van and minivan segments decreased in value the most among all the truck segments.

“Cars continued to depreciate at a steady rate while most SUV segments did better in the second week of the year. Generally, activity was reported to be slow in the auto auctions,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.

Reinforcing Goyal’s comments were the anecdotes collected by Black Book’s representatives in the lanes. The trend started with what the lane watcher in Arizona said, noting, “Auction consignment was low as was the quality of the vehicles there for sale.”

Like in Arizona, pleasant weather in Florida didn’t trigger a wave of dealer activity with Black Book’s watcher in the Sunshine State saying, “The demand has taken a dip here but, as is usually the case, the commercial lanes performed much better than the dealer lanes.”

Up in Massachusetts where winter is fully underway, sloppy conditions kept some dealers at their stores.

“There were fewer buyers in the lanes but the vehicles that sold brought pretty good money. Retail is still relatively slow in the Northeast where our weather has been a big issue,” said Black Book’s representative in Massachusetts.

The anecdotes closed with a report out of Tennessee that indicated: “Select buying is the trend and most of the vehicle interest is in the pickups and sport utilities.” 



3 anecdotes from auction lanes on how 2018 could unfold

LAWRENCEVILLE, Ga. - 

Along with a trio of perspectives from the auction and dealer worlds, the Black Book Market Insights report looking at the first full week of activity in 2018 showed truck segments with larger depreciation than cars.

Editors also determined only one vehicle group — subcompact luxury crossovers — maintained its value from the previous week. Black Book also noticed compact vans saw the heaviest depreciation, dropping in value by 1.70 percent.

“The first week of the year saw used-vehicle values continuing to decline at a pace not much different from the average weekly decline in the month of December,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.

Volume-weighted, editors reported that overall car segment values decreased by 0.57 percent last week, slightly improved from the average weekly decrease of 0.62 percent in values spotted during the previous four weeks.

Black Book indicated the luxury car segment decreased in value at the highest rate among all the car segments.

Again looking at volume-weighted data, editors found that overall truck segment values (including pickups, SUVs, and vans) decreased by 0.66 percent last week, slightly worse than the average weekly decrease of 0.62 percent in values reported during the previous four weeks.

The opening stanza of 2018 allowed Black Book’s representatives in the lanes to gather expectations from a wide array of industry professionals. The rundown began with an auction owner in South Carolina.

“Auto auctions can always use more cars and that supply need will continue in 2018,” the owner said. “The new tax plan should be a boost. The industry could use that surge since the ‘tax season’ has become shorter.”

Next, Black Book collected the thoughts from an executive at one of the auction chains.

“I believe the supply side of the auction business will grow due to more off-lease and repo units becoming available to remarketers. I also feel that the overall dynamics of the industry will be similar to 2017, which is good.”

Finally, Black Book relayed the outlook of a franchised dealer from Georgia.

“We feel like our new- and used-car business will improve in 2018 from a pretty darn good 2017. All of the economic indicators substantiate that theory and the recently passed tax laws should provide a boost both short- and long-term,” the dealer said.



Black Book index declines after 4-month streak of increases

LAWRENCEVILLE, Ga. - 

While the past year showed stronger-than-expected retention rates overall, Black Book’s Used Vehicle Retention Index still fell 0.7 percent from 115.0 to 114.1 last month, following a rise in November. 

In addition to the first decline in the last four months, this is also the lowest tally for December since 2010 when the Index was at 113.3. However, as the economy improved, the index rose back up to 123.0 in 2011, according to Black Book.

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as a percent of original typically-equipped MSRP.

The index rose for four straight months, (August, September, October and November) before falling as a result of higher depreciation recorded for both car and truck segments, according to Black Book.

Black Book explained that last month, higher depreciation on vehicle segments was led by the full-size luxury CUV/SUV (-2.0 percent); mid-size luxury CUV/SUV (-1.9 percent); full-size car (-1.7 percent); compact crossover (-1.7 percent); and compact car segments (-1.4 percent).

“While December finished on a slightly down note for the Index, the overall year in 2017 was filled with stronger-than-expected retention rates, mainly due to a continuously health economy and vehicle replacement activity following the major hurricanes,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “We expect to see depreciation rates return to normal levels in 2018, even though the recent tax changes may incentivize some additional spending, particularly during the spring tax season.”



Wholesale car prices plummet to close 2017

LAWRENCEVILLE, Ga. - 

Black Book noticed that big crystal ball in Times Square wasn’t the only thing to make a noteworthy drop to wrap up 2017.

This week's edition of the Black Book Market Insights revealed cars softening in value by a record 0.78 percent. Editors determined that midsize cars saw the highest depreciation with a 1.18-percent decrease in value. The compact segment wasn’t far off that pace with a drop of 0.93 percent.

Conversely, Black Book pointed out that small pickups in the truck segment performed the best out of all vehicle categories, maintaining their value from the previous week.

“The last full week of 2017 saw the steepest decline of the year in the overall car segment,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.

While cars made their volume-weighted, record decline of 0.78 percent — easily representing the highest weekly depreciation rate of the year — editors indicated overall truck segment values (including pickups, SUVs and vans) declined by 0.54 percent. That figure was in line with the average weekly adjustment of 0.57 percent spotted during the previous four weeks.

Black Book reported that the subcompact luxury crossover segment performed the worst, decreasing by 1.38 percent.

While Ryan Seacrest might not have announced the car price drop like the festivities in New York City for New Year’s Eve, Black Book collected anecdotes from the lanes in three different parts of the country, beginning in Texas

“The sellers were holding firm on their floors hoping for an early spring market after the first of the year. This pattern resulted in many no-sales,” Black Book’s lane watcher in the Lone Star said.

Two more reports originated out of the Southeast with the representative in South Carolina stating, “Vehicles under $10,000 sold well, and the attendance was OK,” while down in Florida, the story was, “Dealers are being extra careful not to overspend which is a normal exercise for this time of year.”

Finally up in Pennsylvania where some parts of the state have measured recent snowfall in feet, Black Book’s personnel said, “No-sales seemed to rule the day, although the less expensive cleaner units did OK.”

Update on the specialty markets

As it does on a monthly basis, Black Book shared how the specialty markets are behaving. Here is the rundown:

— Collectible cars: Editors said, “We’ve been looking forward to it for months, and Arizona Auction Week is now here. Hundreds of thousands of collectors, enthusiasts, and dealers are on their way to sunny Scottsdale to attend auctions hosted by Barrett-Jackson, Russo and Steele, RM Sotheby’s, Bonham’s, Gooding, Silver, and Worldwide.”

— Recreational vehicles: Last month, Black Book noted that the values for towable and motorized units had moved in different directions for the first time in several months.

— Powersports markets: Black Book highlighted that the powersports market is entering the 2018 on a positive note. “Most of the segment changes are fairly modest this month, with both cruisers and off-road bikes up a bit, marking an early beginning for the spring selling season,” editors said.

— Heavy duty: Black Book reiterated that key factors for late-model heavy-duty value retention has been condition, mileage and good specifications. “But those attributes play a factor now more than ever,” editors added.

— Medium duty: Black Book closed by noting the medium-duty wholesale market continues its downward trend as the industry opens its doors for 2018. Editors mentioned that this past month, late-model units from 2015 and 2016) dropped by a weighted average of $296 or 0.6 percent, which is less than the previous five months.     



3 varying assessments of wholesale car price changes

CARY, N.C. - 

As 2017 wound down, J.D. Power Valuation Services, KAR Auction Services and RVI Group all shared their wholesale price analysis for what happened in November.

The report that showed the greatest change came from J.D. Power Valuation Services, which indicated in its latest issue of Guidelines that wholesale prices of used vehicles up to 8 years in age fell by 4.2 percent in November.

“November’s loss was more than anticipated,” analysts said in the report. “However, we expected some compensation towards the end of the year for the lift in demand and strengthening in prices associated with Hurricanes Harvey and Irma.”

After three consecutive months of increases, the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index declined in November, softening by 1.6 points or 1.4 percent to settle at 113.0. Through November, the index is down 5.9 percent compared to the same period in 2016.

Meanwhile, according to ADESA Analytical Services’ monthly analysis of wholesale prices by vehicle model class, values in November averaged $10,797. That figure represented a 1.6-percent drop compared to October, but a 1.2-percent lift relative to November 2016. 

KAR Auction Services chief economist Tom Kontos pointed out that almost all segments saw month-over-month average price declines, although full-size SUV/CUVs had a noteworthy uptick despite higher gas prices.

“Average wholesale prices in November were down month-over-month more significantly than in October and, despite being up modestly on a year-over-year basis, are indicative of an end to the price boost from Hurricanes Harvey and Irma,” Kontos said in his latest installment of the Kontos Kommentary.

“Retail used vehicle demand was soft for the month as well, although CPO sales were solid,” he added. “Lingering truck demand in Texas in the aftermath of Harvey may have again contributed to the strength of midsize SUV/CUV prices in November.”

The team at RVI Group determined real used-vehicle prices (seasonally adjusted, 2- to 5-year-old vehicles) declined slightly on a year-over-year basis in November.

According to the RVI Used Car Price Index, real used vehicle prices (after adjusting for MSRP) fell by 0.1 percent in November when compared to November of the previous year.

Similarly, month-over-month real used vehicle prices declined by 0.1 percent. On a month-over-month basis, about half of the segments saw small gains in used car prices.

“Prices for used vehicles are stronger than expected due to higher demand for both new and used vehicles after the hurricane season damaged approximately 1 million cars,” RVI Group said.

Kontos offered more insights from ADESA’s November data when looking deeper into the market.

Kontos pointed out that average wholesale prices for used vehicles remarketed by manufacturers were up 0.9 percent month-over-month and up 7.3 percent year-over-year.

He also mentioned that prices for fleet/lease consignors dropped 2.3 percent sequentially but ticked up 0.8 percent annually.

Kontos went on to state that average prices for dealer consignors were down 4.2 percent versus October and up 3.7 percent relative to November 2016.

Turning back to Guidelines, J.D. Power Valuation Services projected how the December data might land.

Analysts projected that wholesale prices of vehicles up to 8 years in age are expected to decline by approximately 1 percent. That forecast is slightly less than what analysts recorded a year earlier, which was a dip of 1.7 percent.

In terms of its full-year expectations, J.D. Power Valuation Services pegged used-vehicle prices to drop by 5.6 percent in 2017, which would be 1.5 points higher than what the firm spotted for 2016.

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   November 2017  October 2017  November 2016  Prior Month  Prior Year
           
 Total All Vehicles  $10,797  $10,970  $10,672  -1.6%  1.2%
           
 Total Cars  $8,546  $8,718  $8,472  -2.0%  0.9%
 Compact Car  $6,565  $6,578  $6,314  -0.2%  4.0%
 Midsize Car  $7,794  $7,846  $7,446  -0.7%  4.7%
 Full-size Car  $7,190  $7,109  $7,656  1.1%  -6.1%
 Luxury Car  $13,223  $13,680  $13,182  -3.3%  0.3%
 Sporty Car  $13,739  $13,922  $13,064  -1.3%  5.2%
           
 Total Trucks  $12,950  $13,081  $12,726  -1.0%  1.8%
 Minivan  $8,554  $8,775  $8,623  -2.5%  -0.8%
 Full-size Van  $12,940  $13,091  $12,320  -1.2%  5.0%
 Compact SUV/CUV  $10,599  $10,630  $10,439  -0.3%  1.5%
 Midsize SUV/CUV  $11,133  $11,272  $11,473  -1.2%  -3.0%
 Full-size SUV/CUV  $14,208  $13,832  $14,607  2.7%  -2.7%
 Luxury SUV/CUV  $18,844  $19,059  $18,554  -1.1%  1.6%
 Compact Pickup  $9,102  $9,359  $8,755  -2.7%  4.0%
 Full-size Pickup  $16,419  $16,640  $15,548  -1.3%  5.6%

Source: ADESA Analytical Services. October data revised.



Vehicle-value comparison: Charting Harvey and Irma versus Cash For Clunkers

CARY, N.C. - 

As 2017 wound down, Black Book wanted to make a unique comparison. The editorial team looked at how much of an impact Hurricanes Harvey and Irma placed on vehicle prices and the ability to retain values against an incident where a similar amount of used units left the market.

The comparative occurrence came eight years earlier during the federal government’s Car Allowance Rebate System program; better known as “Cash For Clunkers.”

According to Black Book, during the three-month period between July and September of 2009, roughly 690,000 older-model vehicles were replaced during “Cash For Clunkers.” Black Book indicated overall used-vehicle value retention increased 3.4 percent during that span.

During the three-month period between August and October of 2017, Black Book estimated 700,000 vehicles were damaged or destroyed during Hurricanes Harvey and Irma. Editors then found that the overall used-vehicle retention increased by a lower figure; 1.8 percent to be exact.

After uncovering the data, Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics, reflected back on the timeframes.

“While the health of the overall economy and automotive sales environment was significantly different between the two time periods, it’s interesting to see that the hurricanes had a similar effect on used-vehicle values compared with the government’s rebate program in 2009,” Goyal said.

Perhaps to a degree, “Cash For Clunkers” triggered the move toward more economical CUVs and SUVs that dealerships turn with more regularity nowadays as compared to compacts and midsize sedans.

Back in early 2010, Experian Automotive pointed out that the industry produces more than 60 trim levels of vehicles that fell into those segment. The company’s data at the time also showed when comparing new-vehicle registrations in the fourth quarter of 2009 to the same period of the previous year, three of the top five categories with the highest gains were CUVs.

Fast forward to 2017, Black Book watched its Used Vehicle Retention Index rise in November, pushing the reading higher for the third consecutive month. Editors noticed nine segments saw increases in the index during November, including, compact crossover/SUV, midsize crossover/SUV and midsize luxury crossover/SUV

“The continued strengthening of the index indicates 2017 has been a little stronger than expected for used cars and trucks, helped along the way by the hurricane replacement activity,” Goyal said.

“Any continued strengthening over the next few months will mean we’re getting an early jump at the oncoming tax spending season, when consumers use their checks to replace their vehicles in the spring,” he continued.

What might trigger price movements eight years down the road? Perhaps, the spark of value movements won’t necessarily be associated with the segment, but rather rather how the unit is powered as Moody’s Analytics highlighted about residual values for electric vehicles during this webinar with AuSM.



Dealers hunt for holiday season bargains

LAWRENCEVILLE, Ga. - 

Holiday shoppers are in the throes of finding bargains for gift giving. Dealers are in the same predicament in the lanes while looking for inventory, according to the latest observations from Black Book.

Along with what auction watchers described, this week’s Black Book Market Insights report showed both car and truck segments depreciating more than usual. Both segments overall softened in value by 0.64 percent and 0.65 percent, respectively.

Editors noticed only two vehicle categories maintained their value from last week — sub-compact crossovers and compact vans.

“After three months of relatively strong performance, seasonal slide of used vehicle values kicks into high gear,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics. 

Volume-weighted, Black Book determined overall car segment values decreased by 0.64 percent last week, higher than the average weekly decrease of 0.58 percent in values spotted during the previous four weeks.

Editors indicated the near-luxury car segment decreased in value at the highest rate among all the car segments at 0.92 percent or $139.

Volume-weighted, Black Book found that overall truck segment values — including pickups, SUVs and vans dropped by 0.65 percent last week, above the average weekly drop of 0.42 percent in values noticed during the previous four weeks.

Editors pointed out that the midsize luxury crossover/SUV and minivan segments dipped in value at the highest rate among all the truck segments, each sliding by 1.21 percent.

When it comes to lane activity, Black Book representatives reflected what the data revealed.

Down in Florida, a lane watcher said, “Late-model vehicles struggled to reach the remarketing floors while the older clean units brought good to excellent money.”

Another anecdote out of the Sunshine State noted, “As is always the case, the dealers gravitated toward the lanes where the consignors were selling off their inventory creating very sparse attendance in the others.”

In the Southeast, a certain kind of inventory kept auctioneers and ringmen busy with the Black Book representative stationed in Tennessee mentioning, “The buy here-pay here vehicles were the highest volume sellers today.”

Out West in California, the auction scene was described as “a typical December market with activity and conversion percentages down.”

Finally in Pennsylvania, Black Book's lane watcher reported, “The dealers here are optimistic about the end of year market and its chances of remaining fairly stable. This is especially true of the truck market.”

November data analysis

Black Book also sifted through its data for all of November and found that the average price of a used vehicle for model years 2012 through 2016 depreciated in value by 2.2 percent. Editors indicated cars dropped by 2.6 percent overall, and trucks decreased 1.8 percent in value during November.

Black Book added that all vehicles are averaging a 12-month depreciation rate of 13.2 percent.

Editors noticed that small pickups were the only vehicle category to increase in value during November, ticking up by 0.4 percent. Vehicles in the small pickup category include the Toyota Tacoma, Chevrolet Colorado, GMC Canyon, Nissan Frontier and the Honda Ridgeline.

Small pickups ended the month with an average segment price of $21,454, a 6.8-percent drop from year-ago levels ($23,030).

Editors also mentioned sub-compact cars saw the largest decrease in value last month, depreciating by 3.7 percent. Vehicles in this segment include the Chevrolet Sonic, Ford Fiesta, Honda Fit, Toyota Yaris, Nissan Versa, Kia Soul and the Hyundai Accent. This segment entered December with an average price of $6,211.

Black Book went on to note that full-size pickups saw the least depreciation from year-ago value levels. This segment, which closed out November with an average segment price of $24,020, has dropped only 4.3 percent from its value in November of 2016 ($25,111). Vehicles in this category include the Chevrolet Silverado 1500, Ram 1500, GMC Sierra 1500 and the Ford F-150.

“After steady used car values in October, vehicle values overall decreased slightly in November,” Goyal said. “Values typically drop slightly around the holiday season as we reach late into the year, especially right before the tax rebate checks begin to spur buying activity in the first quarter.”



Black Book index climbs for third straight month

LAWRENCEVILLE, Ga. - 

Along with aligning with another online marketplace connecting buyers and sellers of used vehicles, Black Book watched its Used Vehicle Retention Index rise in November, pushing the reading higher for the third consecutive month.

Editors indicated the November index reading increased 0.3 percent month-over-month, ticking up from 114.6 to 115.0. The movement triggered the third straight monthly increase dating back to August when the index sat at 112.6.

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on two- to six-year-old used vehicles, as a percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.

Black Blook explained that the index rising for the third straight month gives used cars and trucks relative strength heading into the final month of the year. The index has increased in five months during 2017, with a sixth month unchanged (June to July).

It’s the first time since 2013 that the index increased at least five times during the calendar year. Back in 2013, the index increased six times.

Editors noticed nine segments saw increases in the index during November, including:

—Compact crossover/SUV
—Full-size car
—Full-size pickups
—Full-size vans
—Luxury cars
—Midsize crossover/SUV
—Midsize luxury crossover/SUV
—Prestige luxury cars
—Small pickups

“The continued strengthening of the index indicates 2017 has been a little stronger than expected for used cars and trucks, helped along the way by the hurricane replacement activity,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book.

“Any continued strengthening over the next few months will mean we’re getting an early jump at the oncoming tax spending season, when consumers use their checks to replace their vehicles in the spring,” Goyal continued.

The index dates back to January 2005 when Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1 percent, while during 2016 the index fell by just 6.4 percent. During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used-vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.

To obtain a copy of the latest Black Book Wholesale Value Index, .

Latest weekly update

Along with sharing the month index, editors also released this week’s Black Book Market Insights report, which mentioned that compact cars sustained their highest depreciation in the past 26 weeks.

Overall according to volume-weighted data, Black Book indicated car segment values declined by 0.66 percent last week. In comparison, car values decreased on average by 0.57 percent per week during the previous four weeks.

Within cars, editors found that sub-compact car and compact car segments performed the worst, decreasing by 1.12 percent and 0.86 percent, respectively.

Moving over to the volume-weighted information for trucks, Black Book reported overall values (including pickups, SUVs and vans) declined by 0.34 percent last week. Truck values softened on average by 0.43 percent per week during the previous four weeks.

For trucks, editors determined the sub-compact crossover segment performed the worst, decreasing by 1.38 percent.

As far as what Black Book’s representatives in the lanes uncovered, it seems dealers are still struggling to find certain kinds of inventory.

Beginning in Arizona, Black Book’s lane watcher said, “The sale was low on inventory, which kept the prices fairly stable.”

Down in Florida, the report was, “Dealers need clean vehicles, but there weren’t that many here. The late model units struggled to make the set floor prices.”

And up in Pennsylvania, “Not enough truck supply here today to satisfy the demand,” was the focus of the Black Book recap.

Finally, another development surfaced in Colorado with the representative stating, “We had a pretty decent sale here thanks to the online buyers. The in-lane attendance continues to decline.”

Black Book to share vehicle data with Carable

In other company news, Black Book announced this week it has signed a partnership agreement with Carable, a unique peer-to-peer used-vehicle marketplace that connects individual buyers and sellers of cars and trucks. Black Book is providing all vehicle valuations for sellers listing their vehicles in the online marketplace.

“An accurately priced vehicle is always the key to connecting buyers and sellers,” Carable founder Patrick Juthberg said. “Carable is truly unique in the auto industry, and our success depends on resources such as Black Book for an efficient and transparent online marketplace.”

Jared Kalfus, senior vice president of sales and marketing at Black Book, added, “Millions of consumers today are accustomed to buying and selling goods online, therefore a marketplace such as Carable is a natural fit for people looking to buy and sell vehicles.

“We’re pleased we can contribute to such a unique marketplace with the most accurate values in the industry, thus ensuring a fair transaction for both sides and offering Carable a chance to realize repeat business as more people utilize the service,” Kalfus went on to say.



Car and truck values soften at similar rates during Thanksgiving week

LAWRENCEVILLE, Ga. - 

Be it a car or truck, Black Book saw both general vehicle segments depreciating at almost the same rate as auctions and dealers celebrated Thanksgiving.

According to this week’s Black Book Market Insights report, editors determined sporty cars and compact vans saw the most depreciation out of both segments, dropping by 0.82 percent and 1.31 percent, respectively.

“Normal seasonal depreciation continues for sporty cars. Commercial compact vans are depreciating faster than the full-size vans,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.

Looking at volume-weighted data, Black Book indicated overall car segment values decreased by 0.48 percent last week, lower than the average weekly decrease of 0.54 percent in values recorded during the previous four weeks.

Volume-weighted truck segment information showed that values for pickups, SUVs and vans softened by 0.49 percent last week. That figure is higher than the average weekly decrease of 0.36 percent in values editors posted during the previous four weeks.

Likely not because of any drowsiness triggered by that Thanksgiving turkey, Black Book’s representative in the lanes uncovered reasons why dealers aren’t moving as much used metal as they would like, which is impacting the lanes at auction.

The first instance of this trend surfaced in Tennessee where Black Book’s representative shared, “Retail is slow on both new and used in our area, causing our wholesale market to sputter after a pretty good fall run.”

In Pennsylvania, a similar story unfolded as the lane watcher relayed, “The number of vehicles sold was noticeably lower today. Dealers commented that we should expect this through the end of the year.”

And in the Northwest, Black Book’s auction visitor mentioned a specific reason why dealers are hesitant to load up on used inventory.

“A used car manager from a new-car store stated that Incentives are really starting to put a strain on his late-model used market,” the lane watcher stationed in Washington said.

Down the West Coast, the seasonal trends of the wholesale market surfaced.

“A national remarketer commented that the end of October seemed to signal that we are pushing toward the seasonal normalcy in the market after a really good late summer/early fall run,” a Black Book resprenstative in California reported.

Up in Michigan, where signs of winter are clear, a lane watcher said, “Four-wheel-drive trucks are still selling well. This is a typical market trend here during late fall when hunting season kicks in and snow and ice lurks.”



RVI Group pinpoints October wholesale price increases

STAMFORD, Conn. - 

No matter which way the analysts at RVI Group looked at October wholesale prices, they noticed increases versus September’s readings as well as from year-ago figures.

The RVI Used Vehicle Price Index (Real) increased from September to October by 2.0 percent. When compared to October of last year, prices rose by 1.1 percent.

The firm’s Used Vehicle Price Index (Nominal) climbed by 2.1 percent in October versus September. That index also increased by 3.0 percent year-over-year.

Analysts pointed out that used-vehicle prices also are up on a year-over-year basis for more than half of vehicle segments, with full-size pickups leading the way at 3.9 percent.

Also making notable upward year-over-year movements in October were full-size vans (up 3.2 percent), sports cars (up 2.3 percent) and midsize SUVs (up 1.7 percent)

Conversely, small pickups paced the declines in October as prices for these units softened by 3.5 percent. Only one other segment sustained a year-over-year decline greater than 1 percent in October; subcompacts at 1.1 percent.



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