Strange spring: Car-price momentum remains intact

How odd has this spring been? Well, an entire weekend of Major League Baseball action was postponed because of significant snow in Minnesota, and it has been cars not trucks that are leading overall wholesale market price changes. So the answer is — pretty weird.
This week’s Black Book Market Insights report reiterated how certain truck segments have pulled down the March Black Book Index despite a strong showing by small car segments so far this spring.
“Continued euphoria seen in the auction lanes as high sales percentages persist. Consignors of sedans, particularly rental car companies, have done well in this spring season,” said Anil Goyal, executive vice president operations at Black Book.
Volume-weighted, editors determined that overall car segment values increased by 0.15 percent last week. In comparison, Black Book reported market values for these units increased on average by 0.24 percent per week during the previous two weeks.
Within cars, Black Book noticed the midsize car segment increased the most in value last week, climbing by 0.60 percent or $48.
Again volume-weighted, editors determined overall truck segment values — including pickups, SUVs and vans — decreased by 0.16 percent last week, same as the average decrease per week spotted during the previous two weeks.
In the truck space, Black Book reported the sub-compact crossover increased the most in value last week, rising by 0.17 percent or $19. On the opposite extreme, editors pointed out a pair of truck segments dropped by notable figures. That couple included full-size crossovers and SUVs (down 0.70 percent or $139) as well as full-size luxury crossovers and SUVs (0.47 percent or $138).
Turning next to the anecdotes Black Book’s representatives collected from the lanes, the wintry weather still impacted some portions of the country led the conversations, staring with an auction general manager in Ohio.
“The past four to six weeks have been extremely strong, averaging 78 percent to 81 percent in sales conversion,” the GM told Black Book. “While we always get a bump from tax season, the fact we are now approaching two months of 80 percent is uncommon.
“Add in the inclement weather, and these numbers look even more remarkable,” the GM added.
Black Book also gathered observations from two of Ohio’s neighbors, starting in Pennsylvania, where the lane watcher said, “Volumes were down, causing dealers to experience difficulty sourcing cars. Trucks remain the hot commodity here.”
And up in Michigan, the story was, “The used retail market is definitely picking up at both the independent and franchise stores.”
Moving South, temperatures are improving, and so is the auction activity.
Out of South Carolina, “The market continues to be strong even though the attendance was down this week. In lane and online bidding and buying were good.”
And finally down in Texas, “There was active bidding and consistent sales but the number of consigned vehicles was down. Not sure if the good activity was due to the low number of vehicles to choose from or the seasonality of the spring market.”