Tax Season Price Hikes at Auction Have Begun

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As tax season begins, dealers may be starting to see the expected value increases that coincide with this time of the year in the lanes.
Last week, the percentage of auction price changes that were increases rose to 21 percent, according to Black Book editorial director and senior vice president. Ricky Beggs.
In the latest “Beggs on the Used Car Market” video report, he explained this is the strongest level of price increases seen over the past five weeks.
And the tax season trends were evident in individual segment price changes, as well.
Car prices fell by an average of $58 last week, with seven of the 10 segments having smaller declining levels than the prior week.
Beggs said the two midsize car segments had the smallest price change levels this past week, with segment average prices between $7,500 and $8,900.
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“These are attractively priced for the spring market,” Beggs said.
Moving over to highlight the truck segments, prices here fell by an average of $55, continuning strong retention rates seen throughout 2013.
Judging by auction activity last week, Beggs said the pickups were “getting attention and doing well.”
Full-size passenger vans and compact SUVs both had increasingly positive level changes for the week.
And the compact pickups slowed depreciation, as well, with only a $7 decline.
Interestingly, though overall price retention was strong, a couple of truck segments proved to be outliers last week.
The luxury SUVs and the full-size SUVs, with downward movements of $202 and $190, respectively, saw much more dramatic drops than last week's average.