With fall officially arriving, dealer behavior is changing accordingly based on the data and observations included in the latest Black Book Market Insights report.
Along with more perspective on hurricane-related buying, editors shared in this week’s rundown that truck segments performed much better than car segments. Three vehicle categories within the truck segments increased in value last week, including compact crossovers, compact vans and small pickups.
“Depreciation was steep on luxury cars and sporty cars while smaller cars, SUVs and pickup trucks held their values relatively well last week,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
Volume-weighted, Black Book indicated that overall car segment values decreased by 0.38 percent last week, close to the average weekly drop of 0.33 percent in values registered during the previous four weeks.
Editors noticed midsize, compact and sub-compact cars performed well, while prestige luxury car and premium sporty car segments declined the most.
Again volume-weighted, Black Book found that overall truck segment values (including pickups, SUVs and vans) softened by 0.17 percent last week, similar to the average weekly decrease of 0.14 percent in values spotted during the previous four weeks.
Editors mentioned the full-size luxury crossover/SUV and minivan segments dropped the most among truck segments by 0.43 percent and 0.46 percent, respectively.
Turning next to what Black Book’s representatives in the lanes reported back to headquarters, various auctions are involved in how dealers impacted by hurricanes are responding.
From Texas: “Consignment was off a little today, but the prices are holding steady.”
Another anecdote from the Lone Star State added: “The rental lanes are doing well with compact cars experiencing strong sales. The price point on those vehicles makes them popular as flood-replacement vehicles.”
And from Florida: “Buyers are being cautious and only purchasing vehicles as replacements for previous retail sales.”
Up North where the leaves are likely already turning to red and gold, dealers are bracing for when it turns cold and shopper behavior changes accordingly.
From Michigan: “Retail is just OK in the area. Two wheel drive SUVs and pickups have begun their seasonal dip in values.”
From Massachusetts: “The change in weather has prompted the usual shift in dealer buying. There is more caution and hesitation in the bidding process.”