Lane watch: How much time is left in spring market?
Black Book reported that wholesale values rose another 0.27%, and the estimated average weekly sales rate remained at 50% last week.
The trends prompted analysts to consider how much longer the spring market will continue. Or if perhaps it’s already finished.
Here’s Black Book’s summation included in its Market Insights released on Tuesday.
“Last week, auction conversion rates were stable with the lane outcomes showing some mixed messages, depending on the remarketer’s strategy and location,” analysts said in the report. “It leads us to wonder if the spring market has now come to an end, if rates will continue to show mixed messages, or if once again, we will trend into clear rate movement?
“The general mood of those we’ve talked to is that we still have some weeks of high auction demand ahead of us. Whatever the case may be, Black Book will continue to monitor and report on developing trends to keep you informed,” analysts continued.
On a volume-weighted basis, Black Book determined values in the overall car segment increased 0.37%, with sporty cars leading the way of all nine individual segments moving higher with a rise of 0.75%.
Prices for those sporty cars now have increased for 14 weeks in a row with an average weekly gain of 0.63%, according to Black Book, which mentioned values for those vehicles increased only nine straight weeks during the 2019 spring market.
Also of note, Black Book indicated prices for compact cars increased another 0.52%, extending an upward streak to 11 consecutive weeks. Analysts said the segment has averaged a weekly increase of 0.55% during that stretch.
In the truck department, Black Book said 10 of the 13 truck segments generated price increases last week on a volume-weighted basis, resulting in an overall rise of 0.22%.
Minivans once again led the way with the largest week-over-week value gain by climbing another 0.62%, but analysts acknowledged this was the smallest single week increase for the segment in the past five weeks.
Black Book also mentioned the upward value movement by compact luxury crossovers stopped at eight consecutive weeks, as analysts noticed prices for those units ticked down by 0.02%.