Black Book’s Beggs Takes Extended Look at Specialty Markets
GAINESVILLE, Ga. — Black Book managing editor Ricky Beggs utilized much of his latest "Beggs on the Used Car Market" report to discuss specialty markets such as heavy duty truck and commercial trailers as well as motorcycles and collectible vehicles.
However, Beggs still gave an update on the traditional used-vehicle market and found just a slight increase in the percentage of week-over-week adjustments. The modifications were for traditional car, light-duty trucks and utility vehicles.
Black Book indicated that with an average of 650 models adjusted each day, 56 percent of the changes were raises at an average increase of just above $150.
Beggs went on to mention that the trend for cars was back on a positive move as six of the 10 segment types increased for an overall change of $10 higher.
When looking at the truck segment, Beggs shared that six of the 14 segment types slid down overall last week, resulting in a total decrease of $11. He said this was the first overall drop since Feb. 12.
"Even though one Black Book survey person reported that ‘dealers were passing on some 2010s,' the editors were able to include more 2010 model vehicles with market driven used values," Beggs explained.
"While ‘some sellers keep raising the bar,' as reported by another survey person, ‘buyers were shaking their heads, but are still willing to step up for the right cars,'" he added.
Update on Medium and Heavy Duty Trucks and Commercial Trailers
Beggs conceded that this segment "has had some real struggles throughout the last couple of years," sharing some data to reinforce that claim. Black Book revealed that 4.5 percent of the medium and heavy duty new truck dealer body closed their operations last year.
"As we have finished the first four months of 2010, the auction activity and truck values can best be described as ‘holding its own,' especially during the month of April," Beggs noted.
"If you had a really nice truck, tractor or commercial trailer, it was up in value as much as a couple of hundred dollars," he continued. "The problem is these extra nice trucks and trailers are showing up in the wholesale market in very limited numbers."
Black Book determined the best-selling commercial trailers consisted of aluminum dump trailers and flatbeds. The company added that year-over-year, the retail new sales volumes of Class 8 models are up almost 10 percent for March of this year.
Beggs highlighted that Class 3-7 units are showing even better results with a 20-percent increase in retail sales compared to March of 2009.
"Our medium and heavy duty truck editor, Charles Cathey, recently spent a few days at the ATD Convention and Exposition in Orlando," Beggs said.
"The buzz around the show floor is upbeat for continued growth in both new and used sales for the rest of 2010," Beggs added.
Latest on the CPI Collectible Vehicle Value Guide
At outset of an update on this specific vehicle segment, Beggs admitted, "the collectible and exotic markets fall mostly in the ‘fun-to-have' category. Within this market, the challenges of the struggling economy have put the squeeze on values for most of these vehicles included in the Black Book CPI Value Guide."
With that stance as a backdrop, Black Book found two segment types that showed the most promise for the market. Those types included the 1960-70s muscle cars, which have climbed 1 to 2 percent in value consistently. The other types were vintage exotic units, which Beggs mentioned have brought as much as 3 percent above March/April guide numbers.
Conversely, Black Book revealed that late-model exotics, especially two- to three-year-old models, have been hit pretty hard on the price front. Beggs indicated these units have dropped an average of 3 to 4 percent.
Meanwhile vehicles dating back to the 1950s are up about 1 percent in value from the May/June guide, according to Black Book.
Finally, the segment of vehicles just old enough to be in the CPI Guide — models from the mid-1980s through the mid-1990s — have shown a slight amount of depreciation during the past two months. Beggs noted the downward figure of 1 to 2 percent.
"Maybe the best part of the CPI market is the numerous local, regional and national car shows and weekend drive-ins that are being held now and through early fall," Beggs interjected.
Latest Look at Motorcycle and Powersports Units
Beggs determined that units that fall into this specific category have posted wide movements in recent values.
"The published values for the May Guide are being driven by continued reduced new model production cuts, thus pushing the demand for used models," Beggs noted.
Black Book revealed that metric bikes turned this month to show some strength versus the weakness from March. Elsewhere, the company indicated dirt bikes and ATVs have shown a slight increase in used values, similar to the metric bikes.
"Overall, clean, low-mileage bikes continue to be in short supply, partially driven by fewer repossessed units showing up in the auction lanes along with increased seasonal retail activity," Beggs shared.
"One question that remains is whether the wholesale market has reached its summer high," Beggs proposed.
"With personal watercraft and smaller jet boats included in the Black Book Motorcycle and Powersports Value Guide, these units are consistently up in value for the May guide, as should be expected for this time of the year," he explained.