Beggs: Car & Truck Pricing Trends Continue on Opposite Patterns
Taking a look at the most recent wholesale price trends, Black Book managing editor Ricky Beggs reiterated a familiar refrain — car prices remained volatile, while truck prices have been more stable.
Black Book found 10 of the 14 truck segments declined less than $50 this past week, but only two of the 10 car segments posted that level of change.
“As we get even closer to the end of the year, the results from the auctions indicate a need for quality used cars amidst a continuing tight supply and a mix in the adjustment amounts of those necessary changes,” Beggs surmised during his latest video edition of “Beggs on the Used Car Market.”
Black Book adjusted 842 vehicles each day throughout the last week, the fewest number of changes per day since the last week of July. That’s when the average daily change was 1,355 units per day.
Beggs mentioned the average adjustment on vehicles was a decline of $122, a figure higher than any of the last five weeks.
“This level of necessary changes indicates a more stable market overall,” he interjected.
Black Book indicated the percentage of vehicles adjusted to a higher price this past week climbed to 11 percent. During the past four weeks, that level was only about 6 to 8 percent.
However, when Black Book had to make a downward price adjustment, it was for an average of $154. Beggs mentioned this was the largest average in four weeks.
Turning next to various segments, Beggs talked about how much car prices have dropped. He said for the second time in the last three weeks that the overall average change for cars was a drop of more than $100. To be exact, last week’s decline was $106.
Beggs pointed out the four car segments that dropped the most and indicated that premium sporty cars led the way. He said the segment plummeted more than $300 for the first time this year, sinking $302.
The other three car segments with significant declines were prestige luxury cars (down $193), near luxury cars (down $110) and entry sporty cars (down $108).
As he alluded to earlier, Beggs stressed the 14 truck segments continue to be the most consistent vehicles in the market. Black Book determined the overall price change for trucks was a dip of just $42, the smallest move in the past five weeks.
One soft spot remains, however, as Beggs highlighted the continued decline for full-size crossovers. Last week, the segment declined $152, marking the fourth time in the past six weeks the segment dropped down by at least $100.
Going the opposite way were compact pickups trucks, which made gains last week of $6.
Beggs also found three truck segments “defying the typical fall market” with drops of $15 or less. Those segments were full-size wagons (down $15), full-size vans (down $12) and full-size pickups (down $9).
“It will be a short week at the auctions this week with the Thanksgiving holiday,” Beggs interjected. “To get the necessary inventory this might be a good week to visit some of the online auctions supported by member auctions of the NAAA (National Auto Auction Association).
“We wish for everyone a very happy and blessed Thanksgiving,” he concluded.
To watch Beggs’ videos, go to this website.