GAINESVILLE, Ga. -

The momentum in used-vehicle pricing continued to roll along last week, according to Black Book’s Ricky Beggs, who found that almost three-quarters of the wholesale value adjustments made during the week were positive movements.

Moreover, used-truck prices were up for the third straight week, despite gas prices jumping. Meanwhile car prices climbed for the fifth straight time,
Beggs pointed out in the latest “Beggs on the Used Car Market” report.

Specifically, there was an average of 1,461 value adjustments each day last week with more than 72 percent of these being upward movements.

"The overall change of all the adjustments was an increase of $71, which matches the record amount for the week ending April 9, 2010, almost exactly a year ago," Beggs noted.

Breaking it down, nine of the 10 car segments tracked by Black Book climbed in value, with prestige luxury cars (down $15) being the only downward mover.

Showing the most significant gains were the entry level car and entry midsize car segments, each of which jumped $131. Interestingly enough, both of these segments had $100-plus gains the prior week as well.

Additionally, entry sports cars, premium sporty cars, compact cars and upper midsize cars showed increases between $66 and $79.

These increases did not come as a shock to Beggs.

“Of these six increasing segment types, I am not the least surprised as five of the segments are made up of between 55 percent to 88 percent import vehicles and mostly smaller, more fuel efficient models,” he stated.

“The price of gas rising again this week, along with more news of extended plant closures in Japan for both parts and final assembly has many dealers concerned as to availability of quite a few new models while those concerns are carrying over to the used units,” Beggs continued.

“A couple of larger changes as a result were several model years of Prius increasing by $800 and some late-model Mazda 6 going up in value by $700 for the week. But not every large increase was related to the earthquake scenario. The Jaguar S-Type kept right up there with the Mazda 6 change level,” he added.

Moving over to the truck market, there were price increases in eight of the 14 segments Black Book tracks.

“If it wasn’t for the car market being so strong right now we would be looking at the truck segments as being in a really good market with only selected pieces depreciating,” Beggs shared.

Midsize crossovers showed the heftiest gain (up $93), while full-size SUVs, luxury SUVs and midsize SUVs were the “softest.”

Full-size pickup prices climbed $18 and compact pickups jumped $11.

“Their versatile functionality for both homeowner and service industry personnel just can’t be beat,” Beggs noted.

Continuing on, Beggs explained a bit about Black Book’s data offerings in light of more 2011 model-year units coming into the wholesale arena.

“This week we placed market driven values on another dozen 2011 models that will appear in the electronic data files, the desktop applications and the mobile devices. These will show up in the printed products in less than a month when the lineups are revised for the May publications,” he shared.

“With the current supply levels, the aggressive bidding, supported by some pent up demand ready to make a move on the retail side, it is with much anticipation as to the level of values by the time May 1 arrives,” Beggs continued.

New Video Analysis from Black Book

In other news from the company, Beggs offered some details regarding a new video analysis from the company: “Beggs on the Specialty Markets.”

“You may have noticed an extra market video posted on the Black Book site on Friday, April 1,” he noted. “Due to the interest in these weekly auto-related market updates, we will be posting a similar video on the first of each month highlighting the latest market activity and trends for the specialty markets reported on by Black Book.

“You may also have an interest in the motorcycle and powersports market, medium and heavy duty trucks, the exciting exotic and collectible cars or the variety of units in the recreational vehicles market as a supplement to your existing business or as a personal interest,” Beggs continued. “If so, please take a few minutes to see the ‘Beggs on Specialty Markets’ videos.”

In the first of these reports, Beggs offered a breakdown for each of these unique markets, beginning with recreational vehicles.

RV Market

He pointed out that there is currently a significant rebound in this segment following the economic collapse of a few years ago. Beggs explained that the RV industry — on both the new and used sides — was hit harder than the auto field.

“The sales at special RV auctions continue to show strength as the one- to four-year-old models are great alternatives to new,” he pointed out.

To add some more insight, Beggs provided the analysis of Eric Lawrence, editor of the quarterly updated, electronically delivered RV Guide.

“There is a lot of pent up demand out there. For the last several years, consumers have been holding back on big ticket items,” Lawrence noted.

“Many felt that the economy was too shaky to make a long term financial commitment, but the economy seems to have leveled off and is showing some signs of health, so consumers are starting to break out their checkbooks again and are buying some of the luxury type items that they had been holding off on,” he added.

Motorcycles and Powersports

Next up was the motorcycle and powersports field. Beggs suggested that this arena has also seen some wholesale gains in conjunction with a more robust economy. Auction values have been “showing some impressive trends and mostly increasing values.”

There has been a widespread increase in values for two-wheeled street units, Beggs pointed out, noting that several Harley models in the one- to five-year range have sequential price gains between 6 percent and 9 percent.

“One must keep in mind it is prime retail selling season just around the corner. Fortunately many lenders are easing up on credit criteria and are also buying much deeper down the credit score line,” Beggs shared.

“Like the car market, the supply of used powersports units at auctions continues to be lower than market demand,” he continued.

“Our market analysis even shows where some models are bringing about the same or even more at auction today than at this same time last year. For example, a 2008 Harley-Davidson Fat Boy was worth $12,815 in April 2010. Today that same bike is bringing $12,735, depreciation over the last year of only $80,” Beggs added.

He went on to share some details about metric sport bikes, some of which have held their values quite strongly.

“There are even metric sport bikes showing amazing retention value over the past year as we have a 2008 Kawasaki Ninja 650R up $205 from $3,830 to $4,035 in today’s market,” Beggs added. “Check out the 2007 Suzuki GSX600 which was worth $4,815 last year and now a year older and with more miles today, is worth $5,380. If you want and need used inventory, be ready to step up a little more than you would probably like.”

Medium, Heavy-Duty Trucks & Commercial Trailers

Moving along, Beggs pointed out that there have been upward movement in the big-truck field during 2011, due in part to low supply.

“Some buyers are taking care of their current truck and tractor needs and satisfying the 2007 emission requirements by purchasing used 2008 models instead of new,” he explained.

“As current ordered new trucks start to hit the ground in the next few months, it will be interesting to see if the even less expensive 2006s and 2007s, which should be the typical trade-in for these new trucks, will get enough used buyer attention to hold the strong values,” Beggs added.

He went on to point out that in light of an improving economy spurring more commercial business, “Over the road tractors and commercial trailers, with increasing tonnage, have values showing greater demand and strength,” with some 2008 model-year long-haul tractors showing gains of approximately $3,000. Furthermore, the complementing commercial trailers have posted gains of more than $2,000.

CPI

Lastly, Beggs delved into the collectibles market, which has shown some strength, just not as drastic as other arenas.

“The collectible vehicles in the Black Book CPI Value Guide have shown some strong values since the first of 2011, but not that many with ridiculous increases,” Beggs noted. He cited a possible exception to the rule in the example of a Hemi Cuda Convertible that fetched $1.7 million.

Beggs continued: “The mid-50s American Classics, with quality construction and timeless designs are getting solid interest and consistent retention values. With the majority of recent interest focused on muscle cars, these had been overlooked in recent years.

“The mid- to late-70s models continue to gain interest as the coming collector models,” he added. “Ten years ago this segment was the laughingstock of the collector industry. Many first time collectors are looking at these cars as a good entry point into the hobby or as an investment. The entry collectors may be looking at the 70s as these might have been their first car.”

Beggs stressed that while the “upper hand” is in favor of the buyers in today’s market, an improving economy means that sellers aren’t forced to come down as drastically on price.

He wrapped up the analysis by noting: "I hope this initial version of Beggs on Specialty Markets has added insight into these various market trends. Please let us know what you think.

“Drop me an email or give me a call and tell me how this information can support your business,” Beggs continued. “With today’s market strength, bid high and bid often!”