Beggs: Wholesale Value Changes Become Less Volatile
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GAINESVILLE, Ga. -
There have been “some positives” spotted in the wholesale arena as of late, and while the market last week showed a relatively high average number for daily value adjustments, the degree of change in wholesale prices was the lowest in almost three months, according to Black Book’s Ricky Beggs.
Specifically, the average number of daily wholesale price adjustments that Black Book made last week was higher than 1,100, he pointed out in the latest “Beggs on the Used Car Market” video report. Beginning with the week ending Nov. 12 going through the week ending Dec. 10, the most recent period was the No. 2 week in terms of the largest average number of daily adjustments.
The average change in each adjustment last week was a downward movement of $38.02.
“The market has some positives as we rapidly approach the holidays and end of the year, as 37 percent of the changes required raises to the published values,” said Beggs.
Breaking it down by segment, cars showed an overall average price movement of negative $75. This was an escalation from the average overall changes in the prior two weeks these values dropped $68 and $55.
That said, the slope of the decreases in four of the 10 car segments slowed down.
Moving along, Beggs argued that, “The real strength in the market came within the truck segments, with an average segment change of positive $8.”
The last time that the overall average change for trucks was positive was the week of May 21.
“We have had a steady climb in the average change of the truck segments, getting closer to the zero base line for each of the past seven weeks,” he noted.
There were gains in seven of 14 truck segments. The largest was the full-size crossovers, which moved ahead $72.
Conversely, full-size SUVs experienced the most significant decline among trucks ($30).
“Looking toward the final days of 2010, we expect the units being offered and the total number being sold in the auction venues to ease up over the next few weeks due to the fluctuating auction schedules and the anticipated fewer commercial accounts running in the lanes,” Beggs stated.
“But get ready for more fierce bidding and having to pay stronger prices once the calendar says 2011,” he noted.
New Edition of Black Book’s myUsedCars
In other news from the company, Black book rolled out an updated edition of its myUsedCars mobile vehicle-valuation product for Android-based devices.
Basically, the Android’s camera now serves as a vehicle identification bar code scanner, meaning that users can scan the VIN bar code with the camera to tap into Black Book’s vehicle value database.
Officials noted that myUsedCars is tailored to work on the assortment of Android mobile devices. To obtain the app, users can go through the Android Market. Eligible industry professionals can then turn to Black Book, which will then install the entire data set.
Users can tap into wholesale, retail and finance advance values from Black Book. More than 18,000 used values across 15 model years are included.
Black Book updates the values each day and also offers a weekly edition.
“The response when we added VIN scanning capability to our iPhone application was tremendous, so we immediately began the process of extending this capability to myUsedCars, our Android version,” stated Black Book president Tom Cross.
“Dealers love having the ability to take a quick picture of a vehicle’s bar code, and then having the program automatically look up and display its Black Book values right on their phone or other mobile device,” he continued. “Not only is it a huge time-saver for dealers, but it eliminates the possibility of misidentification or data entry error and helps ensure that the correct vehicle is selected … even as far down as the trim level if that information is included in the VIN.
“Once the vehicle has been selected, users will have the ability to adjust for mileage, geographic location and optional equipment,” he concluded.