Beggs Explains Why Average Units Are Triggering More Adjustments Than Clean Models
Instead of A Tale of Two Cities, Ricky Beggs and the Black Book team spotted “a tale of two markets,” when analyzing the current wholesale market, especially when it comes to the trends for average and clean vehicles.
In his most recent edition of “Beggs on the Used Car Market,” the Black Book managing editor acknowledged that when he gathered market activity and results for the last week it “was almost like two different markets.
“Many times when we say this, we are referencing the different trending between the cars and trucks or between small cars and big trucks,” Beggs explained. “But this past week the differences were noticed between the clean condition vehicles and the average condition units.”
Black Book discovered there were more average condition vehicles adjusted than clean within its daily adjustments. Specifically, editors modified 1,821 average units per day, compared to 1,454 clean units.
Editors also determined average condition unit adjustments resulted in more increases than clean models to the tune of 52 percent to 41 percent, respectively.
Furthermore, Black Book indicated the overall price change for clean condition vehicles was a decline of $31, while average models slipped by just $17.
“I see this trending where the extra clean car values have been so strong so an upward change was not necessary,” Beggs surmised.
“And along with the push of tax season buyers having to get additional inventory to meet the market demand the top of the line car was also in demand,” he added.
Overall, Black Book ended up with five of the 24 total vehicle segments increasing in price for the week. Another change in the trending patterns was with more car segments increasing than trucks.
Editors found entry level cars increased by $28, while compact cars increased by $7. Entry midsize cars climbed by $4.
They also mentioned trucks were positively led by midsize pickup trucks rising most at $39, with compact SUVs posting a solid $22 increase.
Changing gears, Beggs recapped how much he and other members of the Black Book team have been on the road recently.
“Over the past couple of weeks we have been around new and used car dealers at the NADA Convention and Expo in Las Vegas, and then a large group of motorcycle and powersports dealers at the Dealer Expo in Indianapolis,” Beggs shared.
“From within both industries it is very obvious about the enthusiasm toward the state of the market and how the dealers see the opportunities that are in front of them heading into the heart of 2012,” he continued.
“The dealers at both conventions were looking for the top tools to help them grow their business,” he added.
Beggs highlighted Black Book’s new Android app aimed to complement the previously released iPhone app that can provide most current and accurate motorcycle values.
“There were also many longtime auto market dealers at the Dealer Expo who were glad to now have a solid motorcycle app,” he interjected.
“Even though Scott Yarbrough and I were in Indy, the other Black Book editors were still covering the market for cars and the medium and heavy-duty trucks, as well as getting a close look at a couple of majorly updated 2013 new models that will soon be released for consumer purchase,” Beggs went on to say.
“We have another big week ahead, capturing data and doing some in-depth analysis of all these numbers in order to report the most current market. We hope you have a great week and look forward to seeing you on the auction lanes again this week,” he concluded.
Beggs’ video can be viewed here: