Along with an update on the specialty markets, Black Book also shared the significant difference in how much car prices depreciated last week versus trucks.
The latest Black Book Market Insights report indicated cars overall decreased in value by 18 percent more than trucks. Out of all vehicle categories, editors noticed midsized cars saw the highest depreciation at 0.75 percent.
“Mixed reactions noted in the auto auctions across the nation as the market tries to find direction going forward after a resilient performance in the first two quarters,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
Examining volume-weighted data, editors found that overall car segment values declined by 0.46 percent last week. In comparison, the market values had decreased on average by 0.35 percent per week during the previous four weeks.
In car segments, Black Book noticed midsize car and compact car segments performed the worst, decreasing by 0.75 percent and 0.70 percent, respectively.
Looking again at volume-weighted information, editors determined overall truck segment values (including pickups, SUVs and vans) softened by 0.28 percent last week, slightly worse than the average decrease of 0.22 percent per week registered during the previous four weeks.
In truck segments, Black Book said sub-compact crossover values dropped the most by 1.23 percent.
As Goyal referenced, Black Book representatives watching action in the lanes shared a wide array of anecdotes of how dealers are tackling the inventory challenges.
First up from Georgia, the lane observer said, “Attendance and consignment were both good but there was a lot of no-sales. The reps were not willing to drop their floors enough to record the sale.”
Up in Massachusetts, a similar scene played out as Black Book’s attendee indicated, “The market is softer here when compared to the prior weeks. Consignors had challenges selling their inventories.”
Over in Michigan, the representative described how at least one segment left the auction on an upbeat note. “Sellers were the happy group here as buyers were hitting the bids a few extra times in order to secure inventory.”
The report from Colorado alluded to how dealers are tapping into their floor-plan resources as “Dealers need good, clean cars and are paying what they have to in order to get them.”
And finally the report out West was perhaps the most negative as an observer in Washington said, “The market seemed to take a step back today. Not only was the consignment lower, but the overall interest in the vehicles was also sub-par.”
Update on the specialty markets
Black Book’s latest report also contained information about the specialty markets. Here is the rundown:
—Collectible cars: Black Book noted the auctions held in late June and July all had “very respectable” showings, but editors added, “Everyone in the hobby has turned their attention to the automotive super week that takes over Pebble Beach and the Monterey peninsula in mid-August.”
—Recreational Vehicles: Black Book reported the values of both motorized and towable RVs increased at auction last month, although the sales volumes were down.
—Powersports: Every segment in the Powersports market is down, according to editors, who added, “Even a few that normally show signs of life this time of year.”
—Heavy Duty: Black Book explained the reasons why some trucks do better than others is often hard to pinpoint, but age, miles and condition are the big factors.
—Medium Duty: Editors acknowledged the wholesale market continues its downward trend as the industry eases through the summer months. “This past month we experienced a bit more depreciation than we did in June. Auction prices continue to drop on most of the units we track,” they said.