Beggs Says Change in Market Retention Possibly on Horizon
GAINESVILLE, Ga. — When evaluating activity around the auctions in the last week, Black Book's Ricky Beggs made an interesting observation. Less than half of the daily value adjustments Black Book made were positive, marking the second straight time and third instance in five weeks where this has occurred.
And this could be a sign of things to come, he added.
"Even though the average increase was greater than anytime during the last five weeks at just over $167, this may be the first sign of a possible change in market retention," said Beggs, Black Book's managing editor, in the latest "Beggs on the Used Car Market" video report.
He continued: "Throughout the week the Black Book survey personnel and editor observations indicated stability in values but with greater instances of no sales on the auction lanes.
"The buyers just weren't willing to step up to get the deal done and the sellers weren't ready to drop a notch or two," Beggs continued. "Maybe the sellers still think the limited supply of used warrants holding the floors."
Beggs also commented that for quite some time he has been wondering what the ceiling is in terms of rising used values, "especially the one- to two-year-old models that compete against a new-car retail transaction."
Looking at individual segments, he noted that only two of the 10 car categories that Black Book tracks showed increases. Specifically, there was a $15 upswing among sporty cars, while the "higher-dollar level" premium sporty car segment climbed $21.
On the truck side, seven of the 14 segments that Black Book examines showed increases. Overall, trucks were ahead $1.
Interestingly enough, the values of full-size SUVs, midsize SUVs and compact crossovers fell for the first time "in at least the last eight weeks," Beggs noted.
Moving on, Beggs noted that Black Book survey personnel and editors will be attending more than 55 auctions this week.
"Being present on the auction lanes gives us great insight into the market that a computer printout or a data feed just won't show. We also appreciate the personal contacts at the auctions where users stop us on the lanes or back at the office when you call us with your thoughts," he shared.
"Again this past week we were able to include even more 2010 models with market driven results. If you are a current subscriber to any Black Book Internet product you have access to a Weekly Adjustment Report showing the types of changes being made as well as identifying the models getting market driven values for the initial time," Beggs added. "If you have questions about this tool or service or just a comment or two on the market, let us hear from you."
Black Book Lends Hand in Curbstoning Fight
In other news, it was revealed this week by AutoTec that Black Book is lending its support in its quest to quash curbstoning.
Black Book is now one of many other industry-wide partners who have teamed up with AutoTec to rally against the practice of unlicensed dealers posing as private consumers to dodge regulation as they "flip" low-quality used cars, an endeavor that's illegal in many states.
"We do not market our wholesale data, electronic or printed guides to consumers," stated Tom Cross, president of Black Book. "This is another way Black Book is doing its part to help support our best customers — the licensed used-car dealers who rely on our wholesale valuations to run their businesses."
He continued: "Curbstoning might not affect us directly, but it hurts our customers. When a curbstoner sells a car, he takes business away from a licensed dealer. We'll do everything we can to help dealers have better access to customers."
Chuck Redden, president of AutoTec, added: "Black Book is a premier source of wholesale information to the vehicle remarketing industry. Their support underscores their commitment to keeping the wholesale marketplace fair, well-informed, and secure."
Officials urged those interested in finding out more information or joining the cause to visit www.stopcurbstoning.com.