GAINESVILLE, Ga. -

Auction activity picked up last week, as Black Book’s Ricky Beggs said the environment in the lanes last week showed “every dealer must be extremely busy on the retail lots.” Dealers are buying, and rates are on the way up. The driver?

Beggs said the primary reason for strong auction activity is the fact that refund checks are beginning to flow in.

During the Black Book editorial director’s latest, “Beggs on the Used Car Market” video report, he pointed out auction activity “has really picked up the last couple of weeks.”

For example, comments Black Book received from dealers in Florida spoke of strong action in the lanes with “older tax cars” in demand.

Further west in Nevada, Black Book heard comments such as, “there is a major increase in buying and optimism”.

The numbers echoed that sentiment, as prices were up across the board last week.

The average car segment decline of only $19 showed the lowest decline since the week of April 26, 2013, when it came in at -$14.

And a few segments actually saw positive chances this past week. The entry level cars saw a rise of $6, while the entry midsize cars jumped up by $7.

A third segment, the upper mid-size cars also increased this past week by $10.

“Needless to say the car market is on fire,” said Beggs.

The truck segments were looking strong, as well, finishing with an average decline of $33 last week, which is the best level of retention seen since May 17, 2013, according to Black Book data.

Some of the segment movement that stood out included the full-size crossovers with an average drop of $47, the strongest price retention seen over the past five weeks, and the compact crossovers with a better-than-average drop of $16,

“No matter how you look at the market, it is on the uptick. With forty-five percent of the adjustments being increases, if you need inventory get ready to step up to the plate and keep bidding. The last time we had that level of positive changes was a year ago for the week ending February 22, 2013,” Beggs said.