Spring is quickly approaching, and the auction lanes are beginning to show seasonal lifts in prices, according to NADA Used Car Guide.

At the industry level, wholesale prices are expected to experience a “subtle” gain this week. Specifically, they are projected to rise by 0.3 percent, or $50, NADA UCG reported.

Price changes within the segments NADA UCG tracks are expected to be nearly all positive, “with the exception of the large SUV, luxury car, and luxury utility segments, which are all anticipated to see a slight decline ranging from 0.1 percent to 0.3 percent,” officials noted.

NADA reiterated that is expects wholesale prices to continue to see slight increases through the rest of March.

On a month-to-month basis, used prices for units up to eight years in age rose by a modest 0.8 percent in February, “although prices did begin to pick up more noticeably at the end of the month,” NADA said.

“So far, year-to-date prices have improved by a 0.4 percent, well below the 4.4 percent and 2.4 percent increases observed over the same two-month period back in 2011 and 2012,” they continued.

And the gas rate spike the industry has seen so far in 2013 finally tapered down this week, with
Energy Information Administration this week showing the average price of regular grade gasoline (all formulations) fell from $3.78 to 3.76.

But gas prices are still high, and the affects are being felt in the lanes, according to Back Book managing editor Ricky Beggs.

Fuel rates are experiencing what managing editor Beggs contends is the “traditional first of the year gas-price climb, where the national price at the pump average has climbed by 24 cents during February alone and 48 cents since the calendar turned to 2013.”

The effects of high gas prices seem to be hitting the lanes, though, judging by last week’s auction action reported by Black Book.

Highlighting the car segments first, there were three segments that increased in value for the week, including the entry-level cars and entry midsize cars, up by $33 and $16, respectively.

“Any surprises that these are two of the three better fuel economy segments?” Beggs asked.

“As the Black Book survey personnel sent their reports in this past week several mentioned the strong interest in the mid and small cars, as well as the more fuel efficient cars being in demand. One described (it) as ‘the market is up on 30 mpg cars,’” he continued, noting dealers and buyers are mentioning the trend, as well.

For more on wholesale value trend analysis from Beggs, see the Auto Remarketing story here.

Four- and Two-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles up to five years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are based on NADA's proprietary used-vehicle value model which includes assumptions for new-vehicle prices, used-vehicle supply, gasoline prices, and other economic factors.   
 

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