Used-Car Prices

Lane watch: Consistent trends stretch back 4 weeks

LAWRENCEVILLE, Ga. - 

As typical as fans running on high speed above the auction lanes this time of year, Black Book is seeing that the wholesale market currently is demonstrating expected seasonal depreciation trends with car prices falling slightly more than trucks, SUVs and CUVs.

“Depreciation rates have remained consistent during the last four weeks for both car and light truck segments. The used-vehicle market is relatively strong for this time of the year,” said Anil Goyal, executive vice president, operations, at Black Book. 

According to the latest Black Book Market Insights report, volume-weighted, overall car segment values decreased by 0.34 percent last week. In comparison, the values had decreased at a similar rate per week during the previous four weeks.

Among car segments, compact cars, sporty cars and premium sporty cars depreciated the least last week, with declines ranging from $10 to $38.

Again volume-weighted, editors determined overall truck segment values (including pickups, SUVs and vans) decreased by 0.25 percent last week. Just like cars, truck values had softened at a similar rate per week during the previous four weeks.

Within the truck segments, compact vans, minivans and compact luxury crossover/SUVs decreased the most last week, dropping by 0.81 percent or $74, 0.55 percent or $71, and 0.45 percent or $88, respectively.

The truck discussion continued with some of the anecdotes from the lanes Black Book collected from representatives stationed at nearly 60 sales nationwide. Two truck tales surfaced in the Midwest, including

— From Michigan: “Trucks have seen a price rise in the last couple of weeks, which is unusual for our market in July.”

— From Indiana: “Business is good, and dealers are holding onto their trade-ins. Nicer vehicles are scarce as are trucks.

One other observation also originated in the Midwest as the Black Book representative in Wisconsin added, “Active bidding and selling in most lanes even as dealers complain about high prices.”

The two other anecdotes Black Book shared might mimic what’s happening at your local sale.

“Our consignment has been low which has kept the values up. Bidding is quite good on most vehicles,” the lane watcher in Texas said.

A Black Book observer in Florida mentioned, “The older cars continue to struggle, but buyers are paying premium prices for cleaner and newer vehicles.”



Black Book’s June index reflects wholesale market’s ‘resilience’

LAWRENCEVILLE, Ga. - 

Black Book described how the wholesale market is showing its “resilience” based on recent movement of its Used Vehicle Retention Index.

Late Thursday, Black Book released its latest index reading, highlighting that it increased 0.4 percent during June to come in at 113.3. That’s up from the May reading of 112.9.

Editors tabulated that the index has risen 0.3 percent over the last 12 months (113.0).

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 percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.

Black Book recapped that June saw several car and truck segments make a splash during the month with small cars and SUVs providing the biggest impact to the overall index. Editors indicated that segments making the largest gains included:

— Sub-Compact: up 1.4 percent
— Sporty: up 1.2 percent
— Premium sporty: up 0.7 percent
— Compact: up 0.7 percent
— Compact crossovers: up 0.5 percent

“The used car and truck market continues to show its resilience with several segments continuing to serve as the catalyst in driving overall increases to the Black Book Vehicle Retention Index, long after the spring market has ended,” said Anil Goyal, executive vice president of operations at Black Book.

“We believe that the used-vehicle market strength is reaching its plateau and will return to its pattern of accelerating depreciation as we get deeper into the calendar year,” 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.

The index 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, .

Black Book pinpoints the wholesale segment to watch

LAWRENCEVILLE, Ga. - 

Black Book executive vice president of operations Anil Goyal suggested that dealers watch one particular vehicle segment closely as editors continued to see stability in the wholesale market.

“The used-car market has remained relatively stable overall,” Goyal said in this week’s Black Book Market Insights report. “However, recognizing consistent weekly trends may keep you ahead of the game. Keep an eye on luxury segments.”

Volume-weighted, Black Book reported that overall car segment values decreased by 0.3 percent last week, matching the average decrease for the past five weeks.

Among car segments, editors determined near-luxury cars had the steepest depreciation rate at 0.46 percent or $73.

Again volume-weighted, Black Book indicated that overall truck segment values (including pickups, SUVs and vans) softened by 0.25 percent last week; a bit more than the average of 0.20 percent recorded during the previous four weeks.

Within truck segments, midsize and full-size luxury crossover/SUVs decreased the most last week, sliding by 1.13 percent or $236 and 0.91 percent or $302, respectively.

Meanwhile, the anecdotes Black Book collected from its representatives stationed at nearly 60 sales showed a wide array of activities happening in the lanes. Two of the more informative stories surfaced in the Midwest.

—From Indiana: “Consignment was down, so most everything sold well. New cars have slowed, so dealers are concentrating more on the used side of their business.”

—From Michigan: “The market has shown some softening the last few weeks as high mileage and/or poor condition vehicles have drawn fewer and fewer bids.”

Up in Massachusetts, Black Book’s lane watcher also noticed it was difficult for the hammer to drop on rougher units, relaying, “The market was a little softer this week regarding sold prices. The older vehicles were definitely a challenge.”

Moving South, a recap out of Georgia detailed an upbeat scene as the representative said, “The highline sale was better than expected for a June sale. The values on the sold units were appropriate for the vehicles condition.”

Finally out West, dealers evidently aren’t rolling the dice in the lanes as Black Book’s observer in Nevada stated, “A typical summer market here in Las Vegas as selective mid-size and mid-range valued vehicles prevailed.”

Update on specialty markets

As they do at the beginning of each month, Black Book editors shared their observations of what’s happening in the specialty markets. Here are their thoughts:

—Collectibles: To paraphrase Mark Twain, editors said, “The reports of the demise of the classic American muscle car have been greatly exaggerated. Although muscle cars’ values declined for about a year or so beginning in the summer of 2016, they have since rebounded and are on a yearlong winning streak.”

—Recreational Vehicles: Black Book reported the average selling price of motorized units at auction last month jumped by nearly 10 percent, which equates to roughly $4,000.  

—Powersports: Editors recapped the Powersports market has reached its traditional high point for wholesale values this month, and prices reflect that for most segments.

—Heavy Duty: During June, Black Book noticed heavy duty auction activity surged with more buyers and trucks, while the mileage on the trucks continues to increase and the wholesale values continue to decline.

—Medium-Duty: In June, editors determined that older units (from model year 2007 through 2014) dropped by an overall weighted average of $70 or 0.4 percent, which is $47 less than the adjustment they saw in May. “We did not see too much movement in the older units at auction from Class 3 through Class 6 in June,” editors said.

Kontos highlights 2 factors that kept May wholesale prices from dropping significantly

CARMEL, Ind. - 

KAR Auction Services chief economist Tom Kontos pointed out two specific reasons why May wholesale prices registered only a “modest” move lower year-over-year.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used-vehicle prices in May averaged $11,114. That figure was flat compared to April and down a “modest” 0.2 percent relative to May of last year, according to Kontos.

The latest installment of the Kontos Kommentary released on Monday also mentioned that average prices softened on a year-over-year basis for both cars and trucks, with mostly month-over-month declines for cars and mostly month-over-month increases for trucks.  Kontos spotted a notable exception among the truck classes was the compact SUV/CUV segment, “which showed a seasonal decline perhaps reflective of the fact that these vehicles are starting to return to the wholesale market in larger numbers after several years of strong new-vehicle sales.”

Kontos also recapped that average wholesale used vehicle prices registered their third consecutive year-over-year price decline in May.

“However, prices were again seasonally strong, and retail used vehicle sales were solid, especially for independent used-vehicle dealers,” he said. “Wholesale prices remain strong for off-lease vehicles, which, as noted last month, is testimony to the effectiveness of upstream sales in preventing oversupply of these units at physical auctions.”

To reinforce that assessment, Kontos again shared metrics for two specific segments that are 3 years old with less than 45,000 miles.

When holding constant for sale type, model-year age, mileage, and model class segment, prices were up on a year-over-year basis for both midsize cars and midsize SUV/CUVs. Midsize car prices rose 3.5 percent or $408 to $11,943, while midsize SUV/CUV prices climbed 2.6 percent or $538 to $20,858.

“As noted last month, this analysis indicates that wholesale values for off-lease units are holding up well despite the overall softening market trend and is evidence of the effectiveness of new remarketing approaches in redistributing supply into various sales channels and geographically,” Kontos said.

Kontos relayed other ADESA information from May that showed average wholesale prices for used vehicles remarketed by manufacturers were down 2.0 percent month-over-month and up 5.7 percent year-over-year.

Prices for fleet/lease consignors ticked up 0.8 percent sequentially and 6.8 percent annually.

Average prices for dealer consignors dipped 1.5 percent versus April and 3.2 percent relative to last May.

Finally, Kontos closed with data from the National Automobile Dealers Association that indicated retail used-vehicle sales by franchised dealers slipped 1.5 percent year-over-year in May but climbed 2.4 percent for independent dealers.

He added that May certified pre-owned sales were up 12.5 percent from the prior month and up 4.8 percent year-over-year, according to figures from Autodata.  On a year-to-date basis, CPO sales are up 2.2 percent versus last year.               

Kontos elaborated more about the wholesale market in a as well as at the top of the page.  

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   May 2018  April 2018  May 2017  Prior Month  Prior Year
           
 Total All Vehicles  $11,114  $11,116  $11,1401  0.0%  -0.2%
           
 Total Cars  $8,662  $8,778  $8,955  -1.3%  -3.3%
 Compact Car  $6,483  $6,562  $6,836  -1.2%  -5.2%
 Midsize Car  $7,626  $7,701  $7,967  -1.0%  -4.3%
 Full-size Car  $7,845  $7,753  $8,395  1.2%  -6.5%
 Luxury Car  $13,304  $13,474  $13,767  -1.3%  -3.4%
 Sporty Car  $14,453  $14,625  $14,310  -1.2%  1.0%
           
 Total Trucks  $13,200  $13,139  $13,247  0.5%  -0.3%
 Minivan  $9,939  $9,901  $9,117  0.4%  9.0%
 Full-size Van  $13,636  $13,807  $13,360  -1.2%  2.1%
 Compact SUV/CUV  $11,051  $11,096  $10,877  -0.4%  1.6%
 Midsize SUV/CUV  $11,449  $11,425  $11,860  0.2%  -3.5%
 Full-size SUV/CUV  $14,291  $13,878  $14,077  3.0%  1.5%
 Luxury SUV/CUV  $18,678  $18,645  $19,321  0.2%  -3.3%
 Compact Pickup  $9,422  $9,407  $9,368  0.2%  0.6%
 Full-size Pickup  $16,278  $16,137  $16,778  0.9%  -3.0%

Source: ADESA Analytical Services.

Lane watch: Summertime stability arrives

LAWRENCEVILLE, Ga. - 

With the Fourth of July holiday within striking distance, Black Book is seeing typical depreciation patterns common for this time of year.

Editors noted in this week’s Black Book Market Insights report that overall depreciation remained in check as prices for a handful of car and truck segments were unchanged or even increased a little.

“Overall depreciation rates are stable for car and truck segments for this time of the year. Midsize cars did experience a higher drop last week,” said Anil Goyal, executive vice president of operations at Black Book.

Volume-weighted, editors indicated that overall car segment values decreased by 0.35 percent last week. In comparison, these values had decreased on average by 0.23 percent per week in the previous four weeks.

As Goyal mentioned, Black Book found that prices for midsize and compact cars decreased the most among car segments, softening by 0.62 percent or $57 and 0.51 percent or $42, respectively.

Again volume-weighted, editors pointed out that overall truck segment values — including pickups, SUVs and vans — dipped by 0.28 percent last week. That figure represents a jump from values decreasing by 0.14 percent on average per week during the previous four weeks.

Among truck segments, Black Book noticed prices for compact luxury crossover/SUVs and minivans declined the most last week, dropping by 0.50 percent or $99 and 0.45 percent or $58, respectively.

Turning next to what Black Book representatives spotted in the lanes last week, much of the sales recaps originated from the buyer perspective, including:

— From Georgia: “It was a better day to be a seller than a buyer as prices remain pretty strong. Buyers continue to purchase vehicles without much concern over the condition of the vehicle.”

— From Colorado: “Buyers are at the auctions, but there aren’t enough cars to satisfy the demand.”

— From Massachusetts: “Every dealer and captive consignor said the money was good and even better than last week.”

— From North Carolina: “A buyer said that his buy-here, pay-here business is better than it has been in many years.”

The final anecdote of the week came from a Black Book representative stationed in Texas describing buyers from more than 1,000 miles away.

“A very successful dealer in Pennsylvania says that he is having difficulty sourcing the type of vehicles that he retails. His sweet spot is the 4- to 7-year old, low-mileage vehicle,” the lane watcher in the Lone Star State said.

At least 9 elements impacting latest wholesale price movements and June forecast

LAWRENCEVILLE, Ga., and McLEAN, Va. - 

The experts at Black Book and J.D. Power Valuation Services are seeing a wide array of factors ranging the juncture of the calendar to fuel costs to volume in the lanes all impacting their forecasts and most recent wholesale price recaps.

Before looking at what happened at last month as well as last week throughout the auction world, let’s first focus on what the wholesale price expectations are for June.

J.D. Power Valuation Services projected that wholesale prices of vehicles up to 8 years in age are expected to soften by about 0.2 percent. However, when considering full-year expectations, analysts continue to peg wholesale prices ticking up by about 0.8 percent, triggered in part by what they dubbed “exceptionally strong performances” recorded earlier in 2018.

“Negative forecast factors hurting used vehicles continue to be incentives, an anticipated increase in used supply, worsening credit conditions and increasing gasoline prices,” J.D. Power Valuation Services said in its latest issue of Guidelines.

“However, positive factors — such as favorable labor conditions, strengthening housing prices, along with long-term quality improvements — will outweigh the negatives,” analysts continued in the report.

Looking at how analysts arrived that forecast, J.D. Power Valuation Services described the wholesale market turning in a “typical performance” in May.

The J.D. Power Valuations Services’ Seasonally Adjusted Used Vehicle Price remained flat in May when compared to April, sitting at 117.0. That reading settled 3.1 points above the year-ago level and 2.5 points ahead of where the index stood in January.

While the index didn’t shift, analysts determined wholesale prices for vehicles up to 8 years old fell by 1.7 percent in May on a month-over-month basis. The softening was on par for what J.D. Power Valuation Services often spots during this month and actually wasn’t quite as severe as the five-year average, which represented a 2.2-percent drop.

Analysts pointed out that prices for midsize and large trucks went counter to the overall May movement as the former eked out a 0.3-percent price uptick while the latter remained flat.

Prices for large utilities dropped the most in May, according to Guidelines, softening by 3 percent. Not far off that pace were compact utilities (down 1.6 percent) and compact cars (down 2.1 percent).

On the luxury side, J.D. Power Valuation Services noticed large luxury utilities sustained a 4.9-percent price tumble, the most intense monthly drop for the segment since 2008. Analysts mentioned that these units typically hold up well as the 5-year average stood at dip of less than 1 percent.

Prices for luxury compact utilities (down 3.5 percent) and luxury midsize cars (down 3.4 percent) also sustained notable drops in May, according to Guidelines.

Weekly price movement

As they do on a regular basis, the editors at Black Book chimed in with their analysis looking at how wholesale prices moved on a weekly comparison.

This week’s Black Book Market Insights report highlighted that car values in particular showed some of their highest value declines in the last four months, with segments such as Luxury and compact cars leading the way.

Conversely, editors pointed out that the only segment out of all cars and trucks to still show a price increase involved sporty cars.

“As the weather warms up, widespread seasonal declines begin to show in used vehicle values across most segments,” said Anil Goyal, executive vice president of operations at Black Book.

 Volume-weighted, Black Book determined that overall car segment values decreased by 0.38 percent last week. In comparison, the values had decreased on average by 0.20 percent per week during the previous four weeks.

Among car segments, those luxury cars declined by 0.59 percent or $112. Sporty cars edged up by 0.12 percent or $18.

Volume-weighted, Black Book noticed overall truck segment values — including pickups, SUVs, and vans dropped by 0.24 percent last week. In comparison, the values had decreased on average of just 0.09 percent per week during the previous four weeks.

Within truck segments, editors pinpointed that prices for full-Size vans decreased the most last week, sliding by 0.56 percent of $86.

Black Book closed its latest update by sharing some of the best anecdotes from its representatives stationed at roughly 60 sales nationwide. Two of the recaps surfaced out of Illinois.

“Overall, it was a good sale. Full size SUVs continue to drop in value but have slowed down the pace in the last couple of weeks,” one lane watcher in Illinois shared.

The other representative from the Land of Lincoln added: “A new-car dealer who sold 25 here today said that he was pleased with the activity as well as the prices.”

As Goyal referenced, the influence of summer is impacting auction activity, and it was apparent in Michigan where the observer noted, “A normal summer pattern as vehicles with issues sold only if they were floored very low.”

Over in Massachusetts, dealers didn’t dip into their floor plan unless the vehicle met their specifications.

“Nice, clean cars brought good money, but everything else was a challenge in both activity and value,” Black Book representative from Massachusetts said.

Finally, the story out West went this way: “We had a decent sale today, but I had several dealers tell me that prices are inching down in retail,” the lane watcher in Arizona said.

Lane watch: Summertime slowdown starts to appear

LAWRENCEVILLE, Ga. - 

Temperatures are rising nationwide with the first official day of summer coming soon, but prices on certain cars and trucks keep dropping noticeably as auctions and dealers enter the summer months.

However this week’s Black Book Market Insights report indicated a few segments, such as sporty cars and compact vans, have remained strong during the last few weeks.

“The used-vehicle prices are dropping faster as we enter the summer lull with increasing no-sales in the auction lanes,” said Anil Goyal, executive vice president of operations at Black Book.

Volume-weighted, editors determined overall car segment values decreased by 0.24 percent last week. In comparison, the values had softened an average of 0.16 percent per week during the previous four weeks.

Within cars last week, Black Book determined midsize cars declined the most (0.55 percent or $51), while sporty cars increased the most (0.38 percent or $59).

Volume-weighted, editors found overall truck segment values (including pickups, SUVs and vans) dipped by 0.17 percent last week. In comparison, the values had decreased on average by 0.07 percent per week during the previous four weeks.

Among trucks last week, sub-compact luxury crossovers decreased the most (0.60 percent or $103) while compact vans increased the most (0.82 percent or $74).

As Goyal referenced, lane activity is starting to tail off a bit as recounted by Black Book’s representatives stationed at about 60 sales each week.

“Consignment is down as is the dealer attendance and participation at the auction,” the observer in Michigan said. “Thankfully, the Internet buyers continue to be heavily involved in purchasing the auction inventory.”

A similar scene unfolded in Pennsylvania where the Black Book personnel noted, “Dealers are hesitant about overstocking as we move into the vacation season. There were many no-sales in today’s auction.”

And the trend wasn’t confined to auctions west of the Mississippi as Black Book’s lane watcher in California added, “We had a good mix of inventory to choose from today, but the result was still a lot of no-sales.”

The other two anecdotes Black Book shared from its auction watchers reflected other trends often seen this year, including:

— From Indiana: “Retail on the used-car side is good. Nice vehicles remain scarce, especially regarding the truck market.”

— From Washington: “We had a low volume of inventory, and a lot of those were high mileage vehicles resulting in an average or below sale.”

Manheim index hits highest point since November as May used sales wobble

ATLANTA - 

Cox Automotive discovered two trends originating in May that might frustrate some dealerships, especially stores that might have landed a bit short of monthly goals. In May, wholesales prices moved higher as used-vehicle sales softened.

Before used-car managers reach for their stress balls, here are the specifics.

Cox Automotive determined wholesale used-vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased 1.25 percent month-over-month in May. This rise brought the Manheim Used Vehicle Value Index to 134.2, which marks a 4.9-percent increase from a year ago and the highest level since last November.

Prices for each of the six vehicle segments Cox Automotive tracks for its index update moved higher in May, with vans leading the way via a 10.2-percent climb.

Coming in roughly at half of that upward price pace were compact cars at 5.7 percent SUVs and CUVs at 5.0 percent. Midsize car prices jumped 4.0 percent, and prices for pickups rose by 2.0 percent.

Even luxury cars squeezed in with a 0.2-percent uptick.

Meanwhile, that slightly more expensive used metal didn’t roll over the curb quite as frequently in May.

According to Cox Automotive estimates, used-vehicle sales volume decreased by 1 percent year-over-year in May. However, analysts contend the annualized pace of used-vehicle sales is up 1 percent over last year.

Analysts also estimated the May used SAAR to be 39.7 million, flat on a month-over-month basis.

So what does all of the May data mean? Cox Automotive offered this clarity with the index update.

“Looking at trends in the weekly Manheim Market Report (MMR) prices, the traditional spring bounce this year started three weeks later than it did in 2016 and earlier years and peaked in April in week 15,” analysts said.

“Used-vehicle prices are now moving down but remain higher now compared to where they were at the beginning of the year than any of the last three years,” they continued. “Price comparisons to last year are starting to get tougher as 2017 saw very low depreciation starting in May and lasting throughout the summer.”

One other note about the wholesale market: Cox Automotive also noticed rental risk pricing strengthened.

Analysts indicated the average price for rental risk units sold at auction in May moved up 8 percent year-over-year. But rental risk prices softened 1 percent compared to April.

Cox Automotive added that the average mileage for rental risk units in May (at 43,000 miles) climbed 11 percent above year-ago readings but dipped 1 percent month-over-month.

Turning the page from the used-vehicle space, Cox Automotive also touched on May new-vehicle sales, which increased 5 percent year-over-year, triggered in part by one more selling day compared to May of last year.

Analysts pegged the May SAAR at 16.8 million, up from last year’s 16.7 million. However, the reading broke the streak of eight straight months of new SAAR coming in at or above 17.0 million.

Cox Automotive stated cars continue to see sharp declines as new sales in May fell 9 percent compared to last year. Light trucks outperformed cars in May and were up 14 percent year-over-year.

Combined rental, commercial and government purchases of new vehicles were up 18 percent year-over-year in May, led by increases in commercial (up 2 percent) and rental (up 30 percent) fleet channels, according to Cox Automotive.

“New vehicle inventories came in under 4 million units for the first time in three months, and inventories are at their lowest levels since January,” analysts said.

Cox Automotive closed its Manheim Index report by highlighting how strong economic momentum continues.

Analysts acknowledged the employment report for May was much stronger than expected as job creation increased to 223,000 when experts had expected 190,000. The prior two monthly numbers were also revised up for a net increase of 15,000 more jobs than originally estimated.

Consumer confidence, as measured by the Conference Board, increased in May to 128, the second highest level for the year and the third best level in more than 17 years.

Dealers widening purchase sphere impacts May wholesale price trends

LAWRENCEVILLE, Ga. - 

Dealers expanding their wholesale search parameters to find the clean vehicles that fit their inventory needs impacted both the weekly and monthly wholesale price updates from Black Book.

Taking a look first at the monthly view, Black Book on Tuesday released its Used Vehicle Retention Index for May, describing a 0.8-percent increase during the month to push the latest reading to 112.9. That figure is up slightly from 112.0 in April.

Editors indicated the index has now ticked up 0.6 percent during the past 12 months.

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 percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage, and condition.

Reflecting the strong end to the spring selling season, Black Book pointed out the latest index update contained 15 total segments with positive or unchanged results. Generating the strongest gains were:

— Subcompact cars: up 1.7 percent
— Compact crossover/SUV: up 1.7 percent
— Full-size cars: up 1.2 percent
— Sporty cars: up 1.0 percent

Editors added the Index now has shown a monthly decline in just three of the past 10 months dating back to August.

“The used-vehicle market is clearly benefitting from strong employment and consumer confidence currently, with many segments of both cars and trucks, large and small, seeing valuation strength over the last several months,” said Anil Goyal, executive vice president of operations at Black Book.

“After spring season, we typically see a decline in values in May. However, this year the used market is fairly stable, resulting in an uptick in our seasonally adjusted Index,” Goyal continued.

The index dates back to January 2005 when Black Book published a benchmark index value of 100.0. 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 2014 when it hit a peak of 128.1.

The entire index report .

Editors share latest via Market Insights

Meanwhile, looking at wholesale movements on shorter time comparison, this week’s Black Book Market Insights report showed car depreciation again accelerating more than trucks, led by three different luxury car segments.

“Wholesale markets show steady depreciation in values while overall consignment levels were reportedly lower last week,” Goyal said.

Volume-weighted, editors calculated overall car segment values decreased by 0.21 percent last week. In comparison, the market values had decreased by 0.10 percent on average during the prior four-week period.

As mentioned within cars, the luxury segments experienced the biggest drops, including:

— Near-luxury cars: down 0.43 percent or $69
— Luxury cars: down 0.40 percent or $77
— Prestige luxury cars: down 0.31 percent or $110

Volume-weighted, editors determined overall truck segment values (including pickups, SUVs and vans) softened by 0.10 percent last week. In comparison, the market values had decreased by 0.04 percent on average during the previous four-week span.

Among trucks, Black Book the luxury crossover/SUV segments performed the worst, including:

— Compact luxury crossover/SUV: down 0.37 percent or $73
— Midsize luxury crossover/SUV: down 0.26 percent or $56
— Full-size luxury crossover/SUV: down 0.26 percent or $86

After recapping the price movements, Black Book turned next to the anecdotes collected by its representatives stationed at about 60 auctions each week. That’s how editors learned about how dealers are on the hunt.

From Tennessee: “Consignment is still running low which is allowing the prices to remain fairly stable. Really nice vehicles are scarce and high,” the lane observer said.

From Pennsylvania: “A dealer stated that he is having to expand his buying area to find enough good, clean vehicles,” another auction watcher added.

Scenes from the Southeast gave further background to what’s happening at sales nowadays.

“Consignment was down. I watched a couple of dealer lanes and it seemed as if they were still trying to fetch the spring price points which resulted in a lot of no-sales,” Black Book’s representative in Georgia said.

Another observer in Florida added, “The sellers are trying to hold their floors on trucks, while luxury cars and older cars didn’t sell well.”

Finally, from up in Michigan, the sale recap went this way: “Dealer consignment and bidding was down this week and prices were on the soft side. Sports cars are doing really well.”

Update on specialty markets

With it being the first week of the month, Black Book also distributed its latest look on how the specialty markets are changing. Here is the rundown:

— Collectibles: Black Book recapped that buyers of the limited production Ford GT coupe were required to keep their vehicle for two years before selling it. Editors mentioned Ford has filed a lawsuit against actor John Cena, and his dealer, for prematurely selling his GT.

— Recreational Vehicles: Black Book noted that RV values at auction were mixed last month, with motorized units “taking a big hit, while towables managed a small gain.” With the exception of February, editors noticed that motor homes have been dropping consistently since last October.

— Powersports: Editors indicated powersports values heading into summer are steady or up modestly for most segments.

— Heavy-duty: Black Book indicated “serious” buyers showed up as Memorial Day weekend approached, while the volume of trucks at the heavy-duty auction venues dropped, helping to stabilize prices.

— Medium-Duty: This past month, editors determined that older Units (from model years 2007 through 2014) dropped an average of $117 or 0.6 percent, which is just $5 more than last month. Black Book added late models reported a positive trend compared to May’s results. Last month, late models (2015-2016) dropped $296, which is a $15 improvement.

2 factors shaping dealer decisions in the lanes

LAWRENCVILLE, Ga. - 

Along with giving a rundown of the latest wholesale price movements, this week’s Black Book Market Insights report gave some perspective on a pair of factors shaping what dealers are buying at auction nowadays and why.

First off, editors noticed continued stabilization of prices for the majority of car and truck segments. Black Book indicated some segments such as sporty cars and sub-compact crossovers continue to see increases, even after the spring selling season.

“The used-vehicle market prices were stable last week after a good spring season this year on mainstream sedans. Sporty cars are experiencing an increase in seasonal demand,” said Anil Goyal, executive vice president of operations at Black Book.

Volume-weighted, editors indicated overall car segment values decreased by 0.09 percent last week. In comparison, the values softened on average of 0.18 percent per week during the previous two weeks.

Within the car segments, Black Book shared the mid-size car segment decreased the most in value last week, declining by 0.35 percent or $34.

Turning to volume-weighted truck data, editors found that overall truck segment values (including pickups, SUVs and vans) ticked 0.05 percent lower last week, similar to the average decrease per week spotted during the previous two weeks.

Among trucks, Black Book pointed out that the sub-compact crossover increased the most in value last week, rising by 0.14 percent or $17.

Beginning the rundown of what Black Book representatives in the lanes noticed last week, the first anecdote originated out of Indiana where an observer said, “Lots of repos, off-lease and rental units, and they all sold well.

“Escalating fuel prices do not appear to be affecting the truck market as of now,” the Indiana lane watcher added.

Black Book mentioned that in some counties in the nation, the average gasoline price is above $4 per gallon.

Editors added the U.S. Energy Information Administration expects U.S. regular gasoline retail prices to reach a summer peak of $2.97 per gallon in June, before falling to $2.86 per gallon in September.

Beyond fuel costs, another lane observer described an additional element shaping what dealers are securing at the auction.

“Buyers are becoming more cautious as they are only buying vehicles to replace a recent retail sale,” Black Book representative in Florida said.

Nearby in Georgia, it was a mix of what’s typically seen in the lanes, as well as an anomaly.

“As usual, the institutional lanes were the best as the dealer lanes started off good but quickly moved to mostly no-sales. Interestingly, the cheaper vehicles were of no interest to the buyers,” the auction watcher in Georgia recounted.

“The final anecdote surfaced out of Colorado where Black Book’s lane watcher said, “Vehicles that are 5 years old or newer are selling the best. Our market is still good.”

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