GAINESVILLE, Ga. -

Black Book vice president and managing editor Ricky Beggs found supporting evidence about the wholesale market sentiment he discovered during last week’s National Auto Auction Association/CAR event.

The industry veteran detailed in his weekly “Beggs on the Used Car Market” video report that Black Book’s market summary and the results from editors’ analysis back up the conference’s enthusiasm toward stronger car values.

“As one of the topics of many conversations was regarding the price of gas, the recent increase in interest and market values on cars continued to be reflected in stronger, more active bidding, and in the end, higher sales prices,” Beggs shared.

Turns out, Black Book found nine of the 10 car segments shot up in value last week as the overall average car price climbed $46. This jump came on the heels of a $22 uptick during the previous week.

“The week’s increase was the largest increase in the car segments in over a year,” Beggs interjected.

Black Book determined the only segment that dropped in value was prestige luxury cars, and it was just $5, the smallest decline this year for that segment.
Beggs turned over to the truck side of the business and learned seven of the 14 segments went up in value “even as we talked and focused on the rising gas prices.”

Prices for all three crossover segments — compact, midsize and full-size — moved higher last week. Black Book found compact pickups posted week-over-week price gains along with what it called a “surprising” upward shift by luxury SUVs, a $37 gain.

For the second week in a row, full-size SUVs paced declines in the truck segment, slipping by $74.

Black Book indicated that with more than 67 percent of the adjustments being increases in value, this week was the largest percentage of positive adjustments since the week ending May 7, 2010. Beggs recollected that time frame completed a run where eight of the previous 10 weeks’ positive adjustments ranged from 62 percent to a high of 86 percent.

Throughout the NAAA/CAR Conference, Beggs noticed comments were consistent as to the shortage of used-vehicle inventory and ultimately the need for more consignment at the auctions.

“Based on end-of-term lease turn-in volume throughout the next year, and the volume of new-car sales, and ultimately trade-ins, this pattern of overall strong used values should continue through this year and into early 2013, as long as no unforeseen catastrophic issues raise their head,” Beggs surmised.

The Black Book executive shared some other observations from the Las Vegas event, including the offer of congratulations to “Coach” Ed Bobit, founder of the CAR Conference, for receiving the NAAA Warren Young Fellowship Award.

“This is one of many industry awards presented during the conference that were received through hard work and consistent support of the remarketing industry,” Beggs pointed out.

Beggs also praised Gus Xamplas, of Donlen, for completing the testing requirements and becoming the 18th remarketing professional to complete the Certified Automotive Remarketer program that has been created and administered through the International Automobile Remarketers Alliance.

“There were some tremendous presentations from auction managers and owners, dealers, credit unions, fleet management companies, economists and other industry specialists,” Beggs observed.

“And as always, the time to exchange ideas and experiences with industry associates is invaluable,” he went on to say. “This is not the kind of event where ‘what happens in Vegas stays in Vegas.’ I am sure that new best practices are already in place due to the program and events. The enthusiasm about the industry was at an all-time high, and I am sure great things will happen within the industry as this excitement continues.”

Beggs wrapped up his latest report by suggesting dealers contact Black Book if they’re in need of more guidance on how to improve their stores.

“Thanks for all the positive comments regarding this weekly market update. We hope it continues to add insight and support of your daily and weekly efforts,” Beggs stated.

“Please give us a call or drop me an e-mail with your comments. We look forward to seeing you on the auction lanes. Have a great week,” he concluded.

This video report and past editions can be viewed here.