Beggs: Dealers Back off Bidding Aggression
Black Book is noticing that slackening retail demand is prompting dealers to become less aggressive in the lanes as bidding activity tapered off last week.
To back up the point, managing editor Ricky Beggs pointed out that prices in all car segments and 12 of 14 truck segments softened a week ago. Only prices for compact SUVs and the full-size crossovers managed to move higher, according to Beggs’ analysis in his latest edition of “Beggs on the Used Car Market.”
Beyond the overall price movement, Beggs highlighted several other points in his latest analysis, including:
—Prices for luxury SUVs paced the decliners last week, sinking by $91. Prices for midsize SUVs weren’t far behind, dropping $56.
—While prices for midsize pickup have been strong for the past three months, the segment hit a bump last week, slipping $51.
—Overall truck prices dipped by $23 last week, the largest declining amount since the week ending March 2.
—For the first time in 12 weeks, compact car prices ticked lower, softening by $20.
—Prices in other car segments moved only modestly a week ago, as entry midsize cars dipped by 0.6 percent and prices for upper midsize cars and entry-level cars each ticked 0.4 percent lower.
“While there are seasonality trends currently taking place in the retail markets, we’re starting to see hesitance of dealers to refill used car and truck inventory,” Beggs shared.
“Some of the rental companies are pushing a few more models into the market with a lesser demand for the 2012s and 2011 models, thus getting less aggressive bidding activity for the latest model years,” he continued.
“This past week was the first time we can recollect that all 10 car segments declined in the same week,” Beggs went on to say.
Beggs’ latest video entry can be viewed below.