Compact crossover SUVs post ‘significant’ price strength

If you’re looking for compact crossover SUVs for your inventory, chances are you’re dipping deeper into your floor-plan account to get them.
This week’s Black Book Market Insights report indicated compact crossover SUVs are showing “significant” price strength against the rest of the market. In fact, editors put the increase at 1.1 percent looking at figures as of Oct. 1 versus a month earlier.
Meanwhile, Black Book added that a handful of truck segments showed strong retention versus that of cars.
“Depreciation increased on both cars and light trucks. Car segments saw the highest weekly depreciation in seven weeks. However, prices in the Houston-area market remain elevated,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
Volume-weighted data showed that overall car segment values decreased by 0.50 percent last week, worse than the average weekly decrease of 0.36 percent in values spotted during the previous four weeks.
Editors mentioned sub-compact car, compact car and full-size car segments performed the best while luxury car and premium sporty car segments declined the most.
Again volume-weighted information revealed overall truck segment values — including pickups, SUVs and vans — decreased by 0.26 percent last week, worse than the average weekly decrease of 0.15 percent in values editors noticed during the previous four weeks.
Black Book added that the luxury crossover/SUV generally performed the worst among truck segments.
Turning next to what Black Book representatives witnessed in the lanes, a Pennsylvania auction general manager told the observer: “The market is in neutral here, typical of the fall season. Dealers are more cautious with regard not only to what they will purchase, but how much they will pay.”
Down in Texas, the story played out similar to what’s been seen since Hurricane Harvey impacted the region nearly two months ago.
“Prices remain elevated, and the buyers’ options remain good from an inventory standpoint,” Black Book’s lane watcher in the Lone Star State said. “The supply has met the demand adequately after the hurricane due to the abundance of vehicles being shipped into our area.”
Over in Georgia, dealers aren’t necessarily making the hammer fall with every vehicle that crosses the block.
“There is a lot of hesitation in the current market. The fact that dealers are buying lower-priced vehicles which often have some type of damage and/or high mileage is evidence of their apprehension,” said Black Book’s representative stationed in Georgia.
Finally, up in Michigan where fall is in full swing, the activity matched the changing weather with the observer noting, “Trucks and SUVs made up most of the consignment and an even larger portion of the sales conversions.”