| -

GAINESVILLE, Ga. — Ricky Beggs and the rest of the crew at Black Book watched all 10 car segments decline in value again last week. The streak of drops now has reached eight straight weeks, with prestige luxury cars leading the way.

The Black Book managing editor pointed out, however, in his latest "Beggs on the Used Car Market" video report that the streak nearly came to an end. Full-size cars edged downward just $1. However, Beggs elaborated about the slump associated with prestige luxury cars.

"The segment type with the largest decline was again the prestige luxury cars," Beggs began.

"This recent market trend on the prestige luxury cars, which is slightly contrary to most of the market, is being driven by a not so strong consumer confidence level and also a segment type where many of the models in this segment are high-lease contracts," he said. Beggs noted that this segment has dipped 11 weeks in a row.

"Thus, there is going to be a more steady supply coming back into the market at the end of term, even in a time when the market is not most favorable for this level of vehicle," Beggs added.

Turning next to the truck market, Black Book determined five of the 14 segment types finished on the positive side. The range of change included a $42 increase for compact SUVs to a $109 decrease for luxury SUVs.

Like prestige luxury cars, Beggs pointed out luxury SUVs have declined for 11 consecutive weeks.

In regard to the overall wholesale market, Black Book indicated 42 percent of the adjustments this past week were increases. That amount is compared to a little more than 26 percent the previous two weeks.

Beggs pinpointed that the overall change in values was similar to the prior week — a drop of about $45.

Black Book also noticed more stability in the most recent week with only 824 adjustments on average for each daily update. The previous week, the adjustments for the daily updates soared above 1,900.

"The results of the auction sales have indicated a very stable market overall as we had a jump in the percentage of adjustments requiring increases in the values as compared to the adjustments from the previous two weeks," Beggs shared.

Though the wholesale market appears to be stabilizing, Black Book reiterated analysis of retail pricing and sentiments from dealers. The used- and new-vehicle retail markets appear to be colliding.

"We are paying particular attention to an overall good market with a focus on the 2009 and 2010 used models," Beggs explained.

"They continue to compete with the new-car model," he continued. "The strength of the used and the various finance incentives makes the monthly payment for used and new very close."

In other company news, Beggs saluted the efforts of John Hopson, who had represented Black Book at the auctions in the Houston area for more than 12 years.

"John has been gathering vital information and reporting the market back to the Black Book editors," Beggs noted. "Thanks John for your service and all the best in retirement."

To replace Hopson, Black Book tapped Richard Wilson as the newest survey representative. The company indicated Wilson will be attending and reporting the market activity at a couple of auctions in the Houston area each week.

Beggs had the chance to hit the road last week, too.

"As I attended auctions in St. Louis and another one in South Carolina this past week, thanks to all of you who said hello and mentioned the value of this (commentary)," Beggs emphasized.

"I also appreciate the very valued and detailed feedback regarding the market and issues that, you the dealer, are facing in today's market environment," he stressed.

Black Book shared the travel plans in store for the upcoming week. While survey personnel are scheduled to be stationed at more than 55 auctions, editors are heading for the lanes at facilities in Michigan, Nevada, South Carolina and Georgia.

"Let us know what you are seeing in the market," Beggs reiterated.

Beggs wrapped up his latest commentary by mentioning he will be part of a Webinar on Thursday hosted by the Automotive Fleet and Leasing Association. To register, visit www.AFLAonline.org.