Black Book: Car Segment Finally Breaks into Positive Territory
GAINESVILLE, Ga. — In a record-breaking week — percentage-wise — for upward value changes, Black Book's overall wholesale value adjustments were positive for the fourth straight week and for the fifth time in six weeks. The overall car segment, in particular, finally showed an increase, according to managing editor Ricky Beggs.
"The end-of-the-week adjustment reports indicated a significant number of daily, and thus total weekly, adjustments — almost 11,200 for the week," he said in the latest "Beggs on the Used Car Market" report.
"A great majority of them — a record 87 percent — were increases over the previously published wholesale values," Beggs continued. "This is the fifth time since last November we have adjusted over 11,000 vehicles during a weekly time period. This is the fourth consecutive and five of the last six weeks, that the overall adjustment level was in a positive direction."
Looking at the 10 car segments that Black Book tracks, their average adjustment finally moved positively after showing a "steady climb" for quite a while.
The only two car segments that didn't see an increase were luxury level cars and prestige level cars.
"As a whole, the combined car segments finally broke into positive territory this week," Beggs explained. "With a steady climb towards actual appreciation for eight of the last nine weeks, this week finally showed an increase of $13.01, with eight of the 10 car segments finishing in positive territory."
As for the truck segments, 13 of the 14 that Black Book tracks showed gains in the last week, as the overall segment climbed for the fifth straight time.
The only truck segment that wavered was the full-size crossover category, which was down for the seventh straight week.
"Needless to say, the strong spring market continues to roll on," Beggs reported.
Offering some more overall commentary, Beggs observed that the auction market has been "amazingly active and strong." He said dealers have reported solid traffic and consumer interest in an array of used vehicles.
"Thus they continue to come back to the auctions each week looking for additional inventory. And with the low supply of vehicles in the market, if you need inventory you have to pay what it takes to be the winner on the block," Beggs shared.
"A few comments that were passed along by the Black Book survey personnel this week include 'everything selling strong,' 'very steady,' 'no bargains today,' 'prices are high and inventory is low' and even a few who commented ‘prices down a little' to ‘slow,'" he added.