GAINESVILLE, Ga. -

Under a backdrop of either pollen or snow, Black Book editorial director Ricky Beggs believes three spring market conditions sprouted last week.

In his latest edition of Beggs on the Used Car Market, Beggs highlighted that lane action and weather conditions made lot attendants in strong demand since “pollen has fallen and created more yellow cars than one could ever want in some parts of the country.”

Beggs continued: “It is very obvious that the spring weather has hit in full force, except from the auctions in the Denver area as the Black Book survey person in that market reported snow on sale day and my favorite fly fishing guide in the area had to cancel several scheduled trips.

“But other areas were extremely busy as the market is making movements in values and activity,” he went on to say.

Beggs indicated that price is the value driver in the market information from this past week. He explained there have been reporting periods where slightly more average condition vehicles than clean were adjusted, and generally with more increasing adjustments on the average condition units.

“This past week was the strongest example of this,” Beggs said.

Black Book reported that editors adjusted more than 216 average condition vehicles each day throughout the week.

“Just as impressive, 60 percent of the adjustments for average condition were increases as compared to only 53 percent increases with the clean condition units.” Beggs said. “Maybe the perception is that you get just as much car with an average condition unit while paying less overall.”

Beyond any pollen or snow, Beggs pointed out that gas prices at the pump continue to decline.

Black Book noticed that last week’s drop came in at just over 6 cents, sending the national average to $3.54 per gallon. That figure represents a 38-cent lower mark than one year ago.

“If last year’s trend is any indication the lower prices should continue through the first of July,” Beggs said.

He added that dealers can point directly to lower gas prices as the driver in the market. Black Book determined overall car prices dipped just $21, with only two segments changing on the positive side.

Those two car segments that posted price gains a week ago included compact cars (up $16) and full-size cars (up $6).

“One noticeable change trend to take a different direction was within the vehicles making up what we think needs to be termed the ‘spring segments,’” Beggs said.

“For the previous two years during the first four months of the year, the entry level cars, the entry midsize cars and the upper midsize cars have led the pack in stronger market values,” he continued. “And in the spring of 2013, these three segments have been increasing for all but one or two of the previous eight or nine weeks.”

Black Book found that all three of those vehicle segments Beggs mentioned posted price declines, ranging from $2 to $24.

“A year ago, they were all still strong finishing up in value,” Beggs said.

Meanwhile looking at trucks, Black Book editors are describing the units as still doing well in the lanes, as eight of the 14 truck segment types increased in value for the week.

Prices for full-size pickups moved higher for the seventh consecutive weeks while prices for cargo minivans ticked higher for eight weeks in a row.

Beggs pointed out that compact crossovers and compact SUVs continue to be popular and in demand units, as prices for those vehicles finished up by $4 and $30, respectively.

Also of note, full-size crossovers — which had been the softest segment over the past couple of months — posted a price turnaround, gaining $31 a week ago.

Looking at both the car and truck data from a different perspective, Beggs mentioned there were two segments that had the change amount for the week lower than the overall group segment change for the first time during the past three months.

Black Book indicated prices for entry midsize cars dropping $24 was just slightly more than the car average of $21.

Within the truck group, editors noticed prices for midsize pickups softened $5 last week, while the overall trucks segment average change included a $12 uptick for the quarter.

“Earlier, we mentioned the increase for the full-size crossovers. This better than truck segment average change of $31 as compared to $12, is the first time in the past quarter this segment has been more positive than the group change,” Beggs said.

He wrapped up his latest commentary by noting Black Book continues to see late-model units being the hardest conversion in the auction lanes.

“You can count on Black Book to be back in the auction lanes again this week to report and verify the interest and demand for extra clean, clean, average and even rough condition vehicles,” Beggs said.

“Hopefully where the trees are pushing new leaf growth, the yellow tint on the cars will be overlooked when crossing the auction block,” he went on to say.

Beggs’ video can be viewed below.

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