Evidently the closer the wholesale market moved toward May, the more pricing intensity germinating from this year’s spring market started to diminish.
This week’s Market Insights report from Black Book offered data that suggested the spring market is beginning to lose some of its steam, especially with units not immediately heading for dealer inventory.
“Spring market strength is starting to fade as positive adjustments to values slowed down last week. We are seeing more no-sales in auto auctions than in recent weeks,” Black Book executive vice president of operations Anil Goyal said in the latest report.
Based on volume-weighted data, Black Book reported that overall car segment values increased by 0.12% last week. That figure is half of the four-week average increase tabulated by editors at 0.24%.
Among cars, Black Book noticed values of luxury cars decreased the most, dropping by 0.51%.
Again in connection with volume-weighted information, editors found overall truck segment values (including pickups, SUVs and vans) edged higher by just 0.06% last week. That’s on par with the four-week average uptick of 0.07%.
In the truck space, Black Book found that luxury crossover/SUVs had the highest decreases, with the full-size models sliding by 0.49% and the midsize units softening by 0.57%.
Turning next to what Black Book’s lane observers spotted at nearly 60 sales nationwide, the sentiment reinforced the assertion that the spring market already hits its peak. Here is the rundown:
— From Florida: “We had a normal number of consigned vehicles, but more no-sales than in previous weeks.”
— From Indiana: “Retail is good here, but dealers are not trading for front line merchandise, which is forcing them to pay up at the auction.”
— From North Carolina: “Sales percentages remain high as it seems the dealers are buying anything that rolls through the lanes.”
— From California: “The market remains good, but there more no-sales, especially on the higher mileage units.”
— From Pennsylvania: “The activity seems to have cooled a bit. There were plenty of good, clean cars, but the sales percentages were down.”