Buyers More ‘Selective’ at Auction

The majority of vehicle segments continued to see price drops last week at auction, and buyer sentiment in the lanes showed signs of a slower sales season for dealers.
Black Book’s Ricky Beggs said in his latest “Beggs on the Used Car Market” video that the company’s survey personnel reported such comments from the lanes as “dealers starting an adjustment”; “dealers being selective”; and “buyers being cautious.”
This past week, 1,910 price adjustments were made, and the percent of those that were increases continued to sit low in the range of 33 to 38 percent that has been common the past few weeks.
The Black Book editorial director and senior vice president also pointed out other comments the came up, like “auction needs buyers” – another sign of a slowing summer auction market.
Trucks saw an average decline of $17 this past week, with the car segments experiencing an average drop of $53.
The overall percentage of price changes that were increases was at 35 percent last week.
Beggs explained, “Breaking out the cars and the trucks points out differences in the number of increases, ultimately supporting the overall change differences of the two groups.”
During the past three weeks, car price adjustments that were increases ranged from only 12 percent to 17 percent.
And of the average drop of $53 for the car segments, the only outliers were the entry level cars, with an increase of $1, and the prestige luxury cars with a drop of $118.
“The remainder of the car segments change amount almost mirrored the average segment amount for the week," Beggs said.
For trucks, price adjustments that were increases over the past three weeks jumped to a range of 47 percent to 51 percent.
The full-size and midsize pickups saw price increases of $23 and $21 last week, respectively.
Full-size SUVs were also one the way up, with a $10 increase.
The fourth increasing segment last week was the cargo minivans, which rose by $16.
To view the complete "Beggs on the Used Car Market," report, see the video above.