The newest installment of the Market Insights Report from Black Book indicated how December is turning into a joyous time so far for both consignors and dealers.
The latest wholesale price data and anecdotes from sale days showed that used-car managers are finding more affordable vehicles to fill their inventories while consignors are fetching satisfactory funds for the units they’re sending down the lanes.
According to volume-weighted data, editors found that overall car segment values decreased by 0.72 percent last week. In comparison, Black Book noticed market values had decreased by 0.57 percent on average during the previous four-week stretch.
Among car segments, editors pointed out the full-size car, midsize car, sub-compact car and sporty car experienced the biggest drops with declines ranging from $49 to $120.
Again, looking at volume-weighted information, Black Book found that overall truck segment values (including pickups, SUVs and vans) dropped by 0.64 percent last week. In comparison, truck values had softened by 0.49 percent on average during the prior four-week period.
In truck segments, editors said the minivan and small pickup segments performed the worst, sliding by $167 and $173, respectively.
“Mainstream used-sedan values declined the most last week since January of this year. After bucking the trend for most of the year, the depreciation rates are finally reverting to seasonal expectations,” Anil Goyal, executive vice president of operations for Black Book, .
Meanwhile, what Black Book observers gathered from sale days reflected an upbeat start to the closing month of the year. Here is the rundown:
— From Indiana: “Supply is still low. Trade-ins are down for dealers so they are buying at the auction in order to maintain inventory.”
— From Pennsylvania: “Dealers were prepared to buy and did just that, which resulted in a 70-percent sales percentage for the auction.”
— From California: “Fewer no-sales, which indicates more realistic floors are being considered and set by the sellers.”
— From Massachusetts: “The big consignors said that they were happy as the money ranged from good to very good.”
Update on the specialty market
As they do on a monthly basis, Black Book editors also shared their perspectives on what’s happening in the specialty markets. Here are their observations:
— Collectibles: As the industry delves deeper into the final month of 2018, Black Book noted that much of the talk is about the upcoming auctions in Scottsdale, Ariz., in January. Silver kicks things off on Jan. 10. Barrett-Jackson gets things started in earnest on Jan. 12, and Worldwide, Bonhams, Gooding, Russo and Steele and RM Sotheby’s begin their previews with their main events starting towards the end of that week and running through the weekend.
— Recreational: Black Book mentioned the average selling price of motorized units at auction last month dropped roughly 9 percent, “which sounds significant, but if you exclude September’s unexpected price spike, the drop is really only about 1.5 percent from two months ago, which would be expected going into colder weather.”
— Powersports: With the holiday season officially upon us, Black Book said the powersports market has entered its typical winter slowdown. “The changes in value this month are fairly moderate considering the time of year, with most segments only down 1 percent or so,” editors added.
— Heavy duty: Editors indicated more used trucks are needed to satisfy the growing demand for both long haul and regional delivery needs. Franchised dealers, independent dealers and other used-truck sales venues need to find more inventory to take care of their customer’s used truck needs,” Black Book said.
— Medium duty: Black Book added that demand is consistently increasing for units in these segments as scarcity in used supply continues to be an issue for some segments.