Lane watch: Spring-market atmosphere intensifies
While it still might be a mixed bag for some dealerships on the retail front as we approach the midpoint of February, Black Book already is seeing managers pad their inventories to be ready when customer activities warm up like the thermometer reading.
According to the latest installment of the Black Book Market Insights report, car values moved counter to what they had done in both December and January, triggering Black Book executive vice president of operations Anil Goyal to make this assertion.
“It looks like the spring buying is already in full swing,” Goyal said. “Dealers are bidding up prices on car segments with even the sporty cars getting an early interest.”
The latest report indicated that based on volume-weighted information, overall car segment values increased by 0.04% to start the month of February. In January, analysts noticed that values averaged a decline of 0.21%. The December average decline was even higher at 0.78%.
Among cars, Black Book mentioned the midsize segment appreciated for a fourth week in a row.
Over with trucks, analysts said their volume-weighted data showed that overall truck segment values (including pickups, SUVs, and vans) decreased by 0.19% last week. That’s nearly the same as the four-week average, which was 0.18%.
Looking deeper at trucks, analysts determined values of subcompact crossovers continued on an upward pattern, increasing three out of the last four weeks.
Beyond the data, Black Book’s representatives stationed in the at nearly 60 sales nationwide provided a more vivid glimpse at what dealers are encountering — both trying to secure inventory and retailing vehicles. Here is the rundown:
— From Indiana: “The market seems stable. One dealer commented that his retail was pretty good, but he is challenged by the quality of the trade-ins he is receiving.”
— From Massachusetts: “The dealer lanes enjoyed good activity today, which brought a welcome change. The money was strong for commercial accounts, as well.”
— From Wisconsin: “Dealers are reporting that their showrooms are very quiet which is not abnormal for early February in Wisconsin. We had a lot of no-sales as sellers raised their floors, knowing that dealers are trying to build inventory.”