Beggs: Wholesale Price Declines Become Less Severe
Although used-vehicle values still decreased on a week-over-week basis, wholesale pricing moved in a positive direction last week, according to Black Book’s Ricky Beggs. The executive said the overall change in prices was the most moderate decline the market has seen in more than four months.
More specifically, the overall change in wholesale values last week was a downward movement of $64. The last time the drop-off was this low was the week ending June 24, noted Beggs, the company’s managing editor.
“As we hit the lanes this week there was very good activity, and the prices were what I would call a little improved in many cases,” he said in the latest video report.
Granted, he noted the market saw several "no sales," noting: “As I mentioned last week, the scenario of a pretty good range between the final bid and the asking price on some of the ‘no sales’ was still present.”
That said, 22 percent of the adjustments were positive ones, compared to 20 percent from the prior week. Two weeks prior, only 15 percent of the changes were positive.
On average, there were a little more than 2,100 vehicle values adjusted each day last week.
“Although the dollar amount of the increases was a lesser amount, the declining adjustments were a small amount as well, down $105 versus the $129 (decrease) the week before,” Beggs shared.
Breaking it down by vehicle category, all 10 car segments declined for the 11th straight week. However, there was just one segment that showed a “significant” drop-off: premium sporty cars, which were off $120.
The overall change was a decline of $49, compared to the $73 softening during the prior week. The $49 drop reflects similar movements seen three to four weeks ago, Beggs noted.
Meanwhile, the truck market saw all 14 of its segments decline in value for the first time in four weeks, though the overall movement (down $40) was fairly typical for the last four weeks, he shared.
However, some truck segments were fairly steady: compact SUVs were off only $3, full-size passenger vans dipped $5, compact pickups were off $11 and full-size cargo vans were down $16.