Slightly modifying the famous Mark Twain line in light of how popular utilities are nowadays, Black Book’s latest information showed rumors about how the death of compact cars has been greatly exaggerated.
As a part of this week’s Market Insights report, Black Book reiterated that the three-year retention rates on compact cars have staged a remarkable turnaround in 2018 compared with the last few years. Editors indicated current three-year retention is averaging 43.0 percent versus 39.6 percent just one year ago, with much of this strength attributed to the strong economy and great value on smaller cars currently.
Compact cars are helping to keep the wholesale market steady, according to Black Book.
“Mainstream brand segment values remained stable last week, whereas luxury segments continued to experience negative changes in values,” said Anil Goyal, executive vice president, operations at Black Book.
Looking at volume-weighted information, Black Book reported that overall car segment values increased by just 0.02 percent last week. In comparison, the values had decreased at an average rate of just 0.01 percent per week during the previous four weeks.
Among car segments, editors noticed values of luxury cars (0.29 percent or $54) and prestige luxury car (down 0.20 percent or $68) decreased the most last week.
Again, analyzing volume-weighted data, Black Book determined overall truck segment values (including pickups, SUVs and vans) softened by just 0.09 percent last week. In comparison, the values had dipped by an average rate of 0.10 percent per week during the previous four weeks.
Within truck segments, editors found that values of full-size luxury crossover/SUV (down 0.54 percent or $171) and midsize luxury crossover/SUV (down 0.27 percent or $55) softened the most.
Whether or not it’s a compact car rolling over the block, Black Book representatives stationed at almost 60 sales nationwide spotted brisk activity in the lanes. The anecdotes observers shared covered nearly the entire country, including:
— From Florida: “The rental and off-lease lanes were selling well. Most of the older vehicle lanes struggled due to the poor condition of the units.”
— From Arizona: “The market is still good here as dealers are buying and paying strong prices to obtain inventory.”
— From Massachusetts: “This was the first sale in a long time where the dealer, captive and fleet/lease consignors saw the values and overall activity drop.”
— From Michigan: “Anything really nice with low miles will fetch top dollar whether it is a truck, SUV or passenger car.”
— From Missouri: “It was a good sale early as they sold almost everything. The no-sales became prevalent toward the end of the sale.”