Dealers are scouring the lanes trying to find inventory to prosper during tax season. The daily result is that Black Book editors are seeing some of the highest levels of price adjustments.

Black Book editorial director Ricky Beggs shared in his weekly online video commentary that since the first of February, editors have averaged 1,820 adjustments per day with the lowest daily average during any one week being 1,619.

Beggs highlighted that editors recorded 2,150 adjustments per day this past week, representing the second-highest level since the week ending Dec. 13, which was the peak level for the past year at 2,380 per day.

“The difference between the two most active high water mark weeks was that in last December, only 27 percent of the adjustments were increases, and this past week at 56 percent, you are able to see not only the tremendous activity, but the overall strength in the market,” Beggs said during his latest edition of “Beggs on the Used Car Market.”

Beggs noted another sign of a very active market: Black Book noticed activity in four segments where more than 30 percent of all models within that specific segment posted increasing price adjustments, led by 46 percent of the entry-level cars.

“Counting all adjustments, increases and decreases, the entry level cars segment had 62 percent of all models adjusted,” Beggs said. “This was only topped by the 63 percent of all full-size pickups being adjusted, including increases and decreases.

“All told, eight of the 24 segments tracked and reported by Black Book had at least 40 percent of the vehicles listed in those segments adjusted. What an active and moving market,” he went on to say.

While the daily price adjustment levels are keeping editors busy, Black Book reported car prices softened more last week than they did a year ago.

Beggs indicated the overall average price change for cars came in at a decline of $18, more than the same week a year earlier when car prices softened $8. He mentioned it was also the lowest declining amount since the week ending April 26 of last year when the price decline was $14.

For three consecutive weeks Black Book noticed prices for entry level cars, entry midsize cars and upper midsize cars have had weekly increasing changes.

“Each of these three segments was also weekly increases for the year ago period,” Beggs said.

On the truck side, Black Book said average prices for these units dipped by $10 for the second week in a row, slightly more than the same week a year ago when the price decline was $7.

“This past week six truck segments had increasing weekly changes with only the compact crossovers having back-to-back weekly increases,” Beggs said. “One year ago there were also six increasing segments of which the compact crossovers were increases then as well.”

As he has for several weeks, Beggs wrapped up his weekly commentary by dissecting another element of why tax season is one of the most unique times in the wholesale market.

“Oftentimes we see and talk about seasonality within the market. If there is one point in time each year that is a constant in movement direction and amount, it has to be the current tax season market. The results of the market this past week are so similar to the level of changes one year ago,” Beggs said.

“I know there continues to be blasts of cold weather in many parts of the country, but here in the Southeast there are very small signs of spring about to blossom,” he continued. “Daylight saving time has brought us longer evening hours of sunlight, which often keep the open sign on the showroom door longer each day. This might be what keeps the tax season going and even more activity within the new car markets.

“We will be back on the auction lanes this week to see if the market strength continues,” Beggs went on to say. “And if this next week tracks similar to year ago levels, the market will react even better. March madness is happening in the lanes as well as the hard courts.”