While more than a week remains in January, dealers might already be venturing into the wholesale market with spring on their minds, hoping retail sales increases bloom nicely.
What managers are going to have to pay for inventory varies based on the latest analysis from Black Book and RVI Group.
The December figures from RVI Group showed five vehicle segments generating year-over-year value upticks of at least 1.7 percent. Multiple segments were connected with units more popular when weather is more favorable. The rundown included:
—Sports car: up 2.3 percent
—Luxury small sedan: up 2.1 percent
—Full-size pickup: 1.9 percent
—Luxury full-size sedan: up 1.9 percent
—Sporty coupe: up 1.7 percent.
However, RVI Group also found that there were six vehicle segments that saw their values soften by at least 1 percent. Should these units turn in your market, RVI Group mentioned these segments as possibilities for lower acquisition costs for possible higher margins:
—Luxury coupe: down 4.2 percent
—Sub-compact: down 3.3 percent
—Small pickup: down 2.7 percent
—Small sedan: down 2.0 percent
—Full-size sedan: down 1.3 percent
—Compact: down 1.0 percent
Meanwhile the editorial team that compiled this week’s Black Book Market Insights report illustrated where cars saw larger-than-normal depreciation, especially with the spring selling season right around the corner.
The report also highlighted that within the 2015 model year segment retention, small pickups are holding 72.9 percent of their value; the strongest of any vehicle segment.
"The depreciation rate on car segments increased while strong sales volumes with more supply were reported at the auto auctions," 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 0.76 percent last week, higher than the average weekly decrease of 0.60 percent in values editors noticed during the previous four weeks.
Editors added that the compact car, mid-size car and near luxury car segments decreased in value the most among all the car segments.
Again considering volume-weighted data, Black Book found that overall truck segment values — including pickups, SUVs and vans softened by 0.48 percent last week, better than the average weekly decrease of 0.57 percent in values editors tallied during the previous four weeks.
Editors also mentioned sub-compact crossover, minivan and mid-size crossover/SUV segments decreased in value the most among all the truck segments.
Closing this report with what Black Book’s representatives gathering in the lanes, dealers seem to be somewhat upbeat as 2018 moves along.
Beginning in California, Black Book’s lane watcher mentioned, “Fairly strong sale today with good action in the auction arena as well as the online buying.”
In nearby Nevada, what’s happened on Capitol Hill is pushing dealers to make moves as Black Book found, “Dealers are optimistic that the new tax plan will stimulate many anxious buyers who have been on the sidelines for a while.”
Continuing to move East, Black Book’s representative in Colorado reported, “A pretty good sale here as the market is picking up after the holiday season. Attendance and sales were both up.”
Finally in Georgia, Black Book’s representative noticed, “A lot of vehicles were in good condition and sellers were dropping their floors in order to sell as many as possible. The in-lane attendance was up as well.”