Beggs: We’re Getting Better Handle on More 2010 Model Prices
GAINESVILLE, Ga. — As overall wholesale prices for both cars and trucks slid down again, Ricky Beggs and other Black Book editors tried to obtain an accurate reading on how more 2010 model=-ear units are performing.
The Black Book managing editor pointed out in his latest "Beggs on the Used Car Market" video report that prices for these vehicles are becoming clearer because they're being shifted out of more rental fleets.
"As the current year 2010s are approaching their unofficial first birthday, many more are appearing in the used wholesale marketplace," Beggs began.
"The challenge is finding a location where a consistent percentage of these are actually being sold on the block," he continued. "With the majority of these being remarketed coming from the ranks of the daily rental operations, it is almost normal to see these with miles in the high 20s or low 30,000 levels."
As a result, Black Book offered the initial market-driven used value for 46 additional 2010 model vehicles this past week.
"We encourage you to look for these vehicles in your book, PDA or data files," Beggs pointed out.
Turning to an overall discussion, Beggs indicated the wholesale market "right now is pretty steady and also showing consistent trends within the car and truck segment."
Black Book determined the average change this past week was a drop of $46 for the 10 car segments and a decline of $47 for the 14 truck segments. Editors noted the results were based from the average 1,025 vehicles adjusted each day.
To reinforce his consistency assessment, Beggs said the overall change for the vehicles that were adjusted this past week was a decrease of $81.03. Three of the past four weeks have been at this level, according to Beggs.
Since all 10 car segments fell again, the streak where the average value for these vehicles dropped now stands at 15 weeks in a row.
Segments that had the lowest amounts of decline included entry level cars (down by $6) compact cars (down by $9), full-size cars (down by $11), upper midsize cars (down by $12) and entry midsize cars (down by $23).
Meanwhile, Black Book noticed prestige luxury cars suffered the greatest decline again. This past week, it was $126. Editors found premium sporty cars were close behind with a $117 drop, followed by luxury level cars slipping by $65.
The downward streak for truck prices is nearly as long as cars. Black Book stated trucks have dipped for 13 consecutive weeks.
Beggs conceded that the overall truck change was more than double what it's been during the past nine weeks when it averaged about $21.
"Even at the $47 change for this past week, this is consistent with the changes of the car segments," he stressed.
However, Black Book revealed one truck segment actually went up in value this past week. That was compact pickup trucks, which climbed $24.
Four truck segments did not dip as much as the overall average. Those included luxury SUVs (off by $12), compact SUVs (off by $21), full-size SUVs (off by $28) and full-size pickups (off by $30).
On the weaker side, Beggs mentioned that full-size crossovers — which had been consistently strong for five of the last six weeks — slid down by $115. That segment was followed by the mid-size pickups at $104.
"It is important to look at individual and specific vehicles in our market study when you see one of the weaker segment types — midsize pickups — being at the opposite end of the spectrum from two similar segments that were stronger and more stable segments — compact pickups and the full-size pickup trucks," Beggs explained.
Black Book shared two other noteworthy pieces of data.
During the last four weeks, editors indicated 23.87 percent of the vehicles that were adjusted had increases in value.
Editors also said because the average increase for adjusted vehicles this past week was more than $152, it marked the largest average rise from any period during the past seven weeks.
"We trust this summary has given you some insight into the most recent trends in the market," Beggs indicated.
"Let us know how you see the market moving," he added. "We'll be back on the auction lanes again this week tracking and reporting the markets. We hope to see you there."