Black Book: Auction Prices Continue Upward Momentum
GAINESVILLE, Ga. — Auction activity and prices continue to move higher, according to the latest report on wholesale trends from Black Book. For the seventh straight week, more than 60 percent of the wholesale value adjustments that Black Book made were positive.
In fact, this past week marked the third time in the reporting period that 80 percent or more of the adjustments were upward changes, according to Black Book.
"Our questions of how long these positive trends can continue still hasn't been answered," said Black Book managing editor Ricky Beggs during the latest "Beggs on the Used Car Market" report.
Car segments have been picking up steam lately, increasing for the fourth straight week with an average upswing of $5.
Entry midsize cars showed the heaviest upswing at $39, and full-size cars were next in line, up $33.
Meanwhile, this past week marked the eighth straight time the truck segments showed an increase, climbing an average of $48.
Of the 14 truck segments, the midsize crossovers and luxury SUVs were the only two to show price dips. Beggs said the overall adjustment was a little more than $71. A week ago, it was $48.
He also noted that current model-year units are still being spotted in the used market.
"The current year 2010 models continue to appear in the used marketplace," Beggs noted. "Over a dozen additional 2010 models had market-driven used values included in our electronic value guides this past week. In two weeks the 2010 model lineups, with values, will be included in the printed guides as well."
Continuing on, Beggs addressed the notion that stronger new-vehicle sales in recent months are perhaps showing that consumers are less interested in used vehicles.
He said this simply isn't the case.
"The opposite is true. The continued strength for used-market values, where 15 of the 24 segments are greater today than last month, emphasizes the focus and importance within the retail market for used vehicles," Beggs commented.
"As long as the consumer interest for used vehicles continues, coupled with a less-than-adequate supply of used vehicles in the wholesale channels to meet this interest, the value level of good used vehicles will continue to hold steady or climb even more," he added.
Moving on, Beggs also talked about the car show season and discussed the benefits of attending these events.
"Almost every weekend between now and the fall, you can go within a 50-mile radius and see some beautiful older classic vehicles. These are often pampered and selectively driven by some enthusiastic owners," he noted.
"Most of the cars have some very interesting stories and their owners love to talk about them. Many of these car shows are fundraisers for some very worthwhile local needs and present a great opportunity to keep your dealership in the eyes of current and future customers," Beggs continued. "The Black Book CPI Collectible Vehicle Value Guide covering these collectible cars beginning with 1946 models is a great reflection for this market."