Black Book Predicts Busy After-Holiday Week as Dealers Look to Fill Holes
Black Book’s Ricky Beggs knows dealers are focused on two things this week: Thanksgiving dinner and selling cars.
So with slow activity in the lanes expected, the managing editor offered a glimpse into what the situation might be like after all of the turkey and dressing are gone.
“With this being a holiday week, there will still be some auctions operating with most all online offerings being available. But the main focus this week will be at the retail venues,” Beggs explained in his latest edition of his online video series, “Beggs on the Used Car Market."
Beggs went on to say if showrooms are busy on Black Friday and the rest of the weekend, “the interest in the wholesale market the following week could be extra active as the dealers return to fill the necessary holes.”
During the last full week of auction activity prior to the Thanksgiving holiday week, Beggs indicated Black Book editors were kept busy attending auctions, watching others online and analyzing all of the additional data they routinely capture and receive.
With an active market, the editors adjusted an average of 2,328 vehicles each day last week. That level was the second highest volume since the 2,624 per day for the week ending Sept. 16.
Of all the adjustments, Beggs pointed out 19 percent were increases in value, slightly less than the 24 percent increasing adjustments from the previous week.
Black Book also discovered trucks continue to be more stable than cars.
With the average price of one- to seven-year-old trucks coming in at $13,004, the reading computed into a drop of only $28 for the week.
Beggs noted midsize pickups and compact SUVs increased for the week, while full-size crossovers only dropped by a dollar.
“As an additional note on truck strength, the midsize pickups have increased four of the past five weeks,” Beggs surmised.
Black Book revealed cars declined slightly more at $63 for the week to an average price of $14,516.
Although no car segments increased, editors determined each one declined less than the $100-threshold, which had been the case for five of the last six weeks.
Beggs then shared his reaction to attending Used Car Week.
“My focus of the industry last week was being part of the National Remarketing Conference and CPO Forum in Las Vegas,” Beggs began.
“It was a great time being with so many people with such industry knowledge,” he continued. “The insight that was presented by dealers, auction personnel, repossession and recovery professionals, technology solution companies, economists and data generators, was tremendous.
“It was great to see the enthusiasm throughout the industry,” Beggs went on to say. “You can’t overlook the amount of sidebar sessions and the networking that complement the panels and keynote presentations.”
In the final segment of Beggs’ latest video, he highlighted that Black Book has rolled out its Official Motorcycle and Powersports Value Guide, an officially licensed product of the American Motorcyclist Association.
“Their end of the year recognition and celebration with the AMA Legends and Champions Weekend was this past weekend in Las Vegas,” Beggs noted.
“Since I was already in the great city of lights and gaming, I was able to attend the Motorcycle Hall of Fame 2011 Introduction Ceremony. What a moving recognition to the people who have contributed so much to motorcycling for so many years,” Beggs added.
The Black Book veteran closed with a note about the upcoming holiday.
“Last but not least, on behalf of all of the Black Book associates, let me say thank you to everyone who watches this video market blog each and every week, and also to everyone who uses and depends on the information and services to support your businesses,” he emphasized.
“We wish for each of you a fantastic time with family and friends during the holidays! Thank you and all the best,” Beggs declared.
Beggs’ videos can be viewed here.