As you know if you’ve filled out a bracket for the NCAA tournament, basketball teams such as Villanova, Duke and Kentucky will need six victories in a row to claim a national championship.
Or a similar streak that Black Book has seen involving wholesale prices of cars versus trucks.
The latest Black Book Market Insights report highlighted that cars have outperformed trucks in price changes for six straight weeks. The report illustrated the continued strength displayed by a handful of car segments such as subcompact, compact and sporty cars.
“The spring market continues, especially for small cars and older units. Sporty cars are also starting to experience a seasonal lift in demand as warmer weather arrives,” said Anil Goyal, executive vice president of operations at Black Book.
Volume-weighted, editors determined overall car segment values declined by only 0.14 percent last week. In comparison, the market values had decreased on average by 0.18 percent per week in the previous four weeks.
Within cars, Black Book reiterated the sporty car and sub-compact car segments performed the best, with values increasing by 0.20 percent and 0.08 percent, respectively, last week.
Again examining volume-weighted data, editors found that overall truck segment values — including pickups, SUVs and vans — softened by 0.22 percent last week; an improvement compared to the average decrease of 0.30 percent per week during the previous four weeks.
Among trucks, Black Book found that the full-size luxury crossover/SUV and compact van segments performed the worst with values declining by 0.66 percent and 0.47 percent, respectively, last week.
Turning next to what Black Book editors and personnel who attended about 60 sales throughout the country, anecdotes showed a wide array of activity — sort of how your bracket might look after the opening weekend of the NCAA tournament.
“The sale started off really well with a high percentage of sold units. Full-size trucks and midsize SUVs were the best sellers,” Black Book’s lane watcher in Illinois shared.
Not far away in Michigan, the story was a bit different.
“The market is still lagging here. It was a little bit better today, but customer traffic at the dealerships is below normal. We also can’t seem to get a break with the cold, wet weather,” the representative stationed in Michigan said.
Down in Georgia, the recap was: “Subcompacts and small SUVs performed much better than last week. Buyers complained that prices are too high on older units.”
Sliding out West, the upbeat mood was more evident.
“Best sale here in some time,” Black Book’s lane watcher in Colorado said. “The attendance was good as were the sales percentages. We are seeing a spring market turn for the better.”
Finally out in California, the observer noted, “We had a really strong sale despite the presence of poor weather. The retail demand is back as witnessed by the active bidding.”
Another major wholesale market index is showing consistency through the first two months of 2018.
While the Manheim Used Vehicle Value Index remained unchanged from January to February, the Black Book Used Vehicle Retention Index edged only slightly higher year-over-year.
Black Book released its index on Thursday and reported just a slight uptick to 113.3 compared with January reading of 113.1. The index has now softened by only 0.5 percent during the past 12 months.
The Black Book Used Vehicle Retention Index is calculated using Black Book’s published Wholesale Average value on 2- to 6-year-old used vehicles, as percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.
Black Book explained the February Index value is reflecting the slight bump from early spring selling season activity this year. Several car segments in particular saw increases during the month.
Compact cars and subcompact cars each rose 1.6 percent. Mid-size cars ticked up 1.2 percent, and full-size cars edged 0.4 percent higher.
“There were few surprises in how the Index responded this past month, especially given the early spring selling activity, particularly in non-luxury car segments over the last few weeks,” said Anil Goyal, Black Book’s executive vice president of operations.
“The biggest question at this point is how long the spring selling season will last given the harsh weather that has recently hit parts of the country, and whether or not any of this buying activity will reach certain truck segments,” Goyal went on to say
The index dates back to January 2005 when Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1 percent while during 2016, the index fell by just 6.4 percent.
During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.
To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.
The Manheim Used Vehicle Value Index certainly is consistent to begin 2018.
According to Cox Automotive chief economist Jonathan Smoke, the index reading for February landed exactly where it did in January — 131.0.
While the reading showed wholesale used-vehicle prices (on a mix-, mileage-, and seasonally adjusted basis) remained flat month-over-month, the February figure also represented a 5.1-percent increase from a year ago
Also of note, the February reading marked the lowest level since last July.
On a year-over-year basis, Smoke pointed out that all major market segments except midsize cars saw price gains. Pickups and vans outperformed the overall market with price increases of 6.2 percent and 10.3 percent, respectively.
The latest Manheim index update showed price gains for compact cars and luxury cars at 4.5 percent and 4.7 percent, respectively, as analysts also spotted a 3.6-percent rise for SUVs and CUVs.
And those midsize cars? Prices for those units softened by just 0.3 percent, according to Manheim’s index.
“As expected, now that prices are more in line with the general trend prior to the hurricanes, the rapid acceleration of depreciation has slowed to normal,” Smoke wrote in commentary that accompanied the latest Manheim index report.
“We will likely miss the normal ‘bounce’ in used-vehicle prices in March as tax refunds will again be delayed as part of the IRS effort to combat identity fraud,” he continued. “Weekly tax refunds for the week ending Feb. 16 were down 2 percent versus a similar time period last year equaling almost $2 billion in refunds.
“However, in the week ending Feb. 23, the number and total amount of refunds were up year-over-year during a similar week in 2017, suggesting an increase in the rate of tax return processing,” Smoke went on to say. “Prices should be on firmer footing by April as retail demand kicks into gear.”
According to Cox Automotive estimates, used-vehicle sales increased by 2 percent year-over-year in February versus last year. The February used SAAR came in at 39.6 million units.
Elsewhere in the wholesale arena, Manheim noticed rental risk pricing strengthens.
Analysts computed the average price for rental risk units sold at auction in February rose 4 percent year-over-year. Rental risk prices were up 2 percent compared to January.
Manheim also mentioned average mileage for rental risk units in February — at 46,300 miles — was 11 percent above a year ago.
As far as what Manheim is seeing in the new-model world, Smoke pointed out what many franchised dealers already know: new-vehicle sales decreased in February.
Smoke reiterated that the February new-vehicle sales volume decreased 2 percent year-over-year with the same number of selling days compared to February 2017.
As a result, February SAAR came in at 17.0 million, down from last year’s 17.3 million; but it’s the sixth straight month of more than 17 million SAAR.
Smoke indicated cars continue to see sharp declines as sales in February fell 13 percent compared to last year, with major car segments’ having sales declines. He added that light trucks outperformed cars in February and were up 4 percent year-over-year.
Smoke also noted that the combined rental, commercial, and government purchases of new vehicles rose 4 percent year-over-year in February, led by increases in commercial (up 4 percent) and rental (up 5 percent) fleet channels.
“New-vehicle inventories remained below 4 million units for the eighth straight month, but inventories are at their highest level since June 2017,” he said.
Smoke closed his latest Manheim index commentary by highlighting how consumers are driving strong economic momentum.
“Consumer confidence in February was the highest reading in more than 17 years. Likewise, consumer sentiment rose to its highest reading in more than 13 years,” Smoke said.
“Both increases suggest the consumer is buoyed by lower taxes that are starting to be seen in paychecks,” he continued. “Consumer spending continues to be strong and is driving the economy.
“The first two months of the year saw severe winter weather and marginal declines in new sales, but higher paychecks from tax reform combined with tax refunds should see improving retail spending including auto sales this spring,” Smoke went on to say.
Dealers are banking on the hope consumers aren’t using their federal tax refunds any place other than their store to make a vehicle purchase.
The latest Black Book Market Insights report showed continued spring season momentum for cars such as sub-compacts and midsize models. And even though compact cars and full-size cars declined, editors emphasized the price drops were minimal.
Furthermore, the report touched on the specialty markets and discussed where incentives have fallen as of late, which could be a positive sign for residuals.
But now that we’re one week into March, the spring market appears to be in full swing.
“It was a great week for lower-priced mainstream brand vehicles as tax season buying continues with active bidding in the auction lanes,” said Anil Goyal, Black Book’s executive vice president of operations.
Volume-weighted, editors determined overall car segment values declined by only 0.10 percent last week. In comparison, the market values had decreased on average by 0.24 percent per week during the previous four weeks.
Within cars, Black Book noticed the sub-compact and midsize car segments performed the best, with values increasing by 0.21 percent and 0.11 percent, respectively last week.
Again looking at volume-weighted information, editors determined overall truck segment values — including pickups, SUVs and vans decreased by 0.19 percent last week, lower than the average decrease of 0.37 percent per week mentioned during the previous four weeks.
Among trucks, Black Book pointed out the compact crossover/SUV and compact van segments performed the best with values holding steady last week.
Black Book’s lane watchers who attend about 60 sales each week incorporated some specific financial figures when recapping what they noticed at the auction.
Beginning in Georgia, the observer mentioned, “Vehicles in the $30,000 range were not receiving bids, but the units around $12,000 or less were in demand, and most sold. The dealer lanes seemed to depend on the seller as some held to their floors while others were willing to negotiate the selling price.”
Meanwhile, up in Massachusetts, Black Book’s representative shared, “A franchise dealer reported that January and February were not particularly good, but he received lots of action on vehicles under $10,000.”
Elsewhere, talk about price floors and the spring market filled the bidding areas and cafeterias, including:
— From Wisconsin: “Almost all of the consigned vehicles, whether commercial or dealer owned, only sold if the floor was met, so the sold percentages were just ok.”
— From California: “We had a good sale with active bidding both from the auction floor and via the internet.”
— From Pennsylvania: “There was good activity today, which was indicative of the approaching spring market or the fact that the condition of the vehicles seemed to be better. Either way we had a good sale.”
Specialty update
As mentioned previously, editors also used this report to provide their monthly look at other portions of the wholesale world. Here is what they shared:
— Collectibles: Black Book explained that, “what started out as a national caliber Concours d’Elegance 23 years ago has turned into one of the top three collectible vehicle events in the United States, joining Pebble Beach/Monterey and Scottsdale to become the reigning collectible car triumvirate.”
— Recreational vehicles: For the second month in a row, editors indicated the values of RVs sold at auction, including motorized and towable, were very stable, with changes of less than 2 percent.
— Powersports: Black Book put this segment this way: “The old saying, ‘In like a lion, out like a lamb’ refers to typical March weather, but the first half of that phrase could just as well refer to a few segments in the powersports market this month.”
— Heavy Duty: Editors found that February ended in a similar fashion as January with strong used wholesale values. “This trend includes some commercial trailers; in fact, many dry vans and reefers appreciated in value,” editors said.
— Medium Duty: Overall, Black Book explained the medium duty market stabilized during the last couple of months of 201, and that trend continued for the first part of 2018. “Reports are indicating that truck orders are up on almost all truck classes, but the increase in inventory will not necessarily have a negative impact on the future market,” editors added.
In some places nationwide, grass is becoming greener and buds are forming on trees and other plants.
And the spring market is blooming, too, according to the latest Black Book Market Insights.
The latest report released on Tuesday indicated momentum is picking up steam in the early weeks of the spring selling season with prices rising on sub-compact cars, compact cars and prices unchanged on mid-size cars.
“Spring market demand is in full swing with lower value vehicles selling the best last week,” said Anil Goyal, executive vice president of operations at Black Book, in the analysis.
Volume-weighted, editors noted that overall car segment values decreased by 0.18 percent last week, much better than the average weekly decrease of 0.34 percent in values spotted during the previous four weeks.
Turns out, the subcompact car segment performed the best among all car segments with values going up by 0.31 percent last week.
Moving over to volume-weighted truck trends, Black Book found that overall truck segment values — including pickups, SUVs and vans — decreased by 0.21 percent last week, an improvement compared to the average weekly decrease of 0.44 percent in values recorded during the previous four weeks.
Editors pointed out that small pickup and full-size pickup segments performed the best among all the truck segments.
The four recaps from Black Book’s lane observers also illustrated how the spring market is taking off. Here is the latest nationwide rundown:
— From Missouri: “There was a mix of frontline-ready units and some poorer condition trade-in vehicles which provided potential inventory for everybody. The edgy older vehicles with lower condition ratings sold well but the newer units were hit or miss.”
— From Florida: “Clean older cars are in demand but are becoming harder and harder to source.”
— From California: “Attendance was good and most of the vehicles received bids at some level. With the active bidding the prices seemed to be fairly strong.”
— From Nevada: “Retail is obviously improving as franchise dealers are more prevalent and are making their presence known with auction purchases.”
While the Federal Emergency Management Agency (FEMA) recently described how much hurricane recovery is left to be completed — especially in Texas — KAR Auction Services chief economist Tom Kontos declared the wholesale price impact stemming from Hurricanes Harvey and Irma — particularly on off-lease units — is “over.”
According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, wholesale used-vehicle prices in January averaged $10,980, which is 1.6 percent higher compared to December and 0.3 percent higher relative to January 2017.
Kontos pointed out that prices increased at a higher monthly rate for cars than trucks, but were down on an annual basis.
“Wholesale used-vehicle prices started the year in the pattern that characterized much of 2017 in the months prior to hurricane season; namely, car prices tended to fall while truck prices provided a boost to average wholesale values,” Kontos said in his latest edition of the Kontos Kommentary that was distributed on Friday.
“In January, car prices continued to show year-over-year price declines, while truck prices did the opposite, but that situation is moving towards parity, as indicated by strong month-over-month increases in car prices,” he continued.
As he’s shared for some time now, Kontos offered extra details about fleet and off-lease units that are 3 years old and have less than 45,000 miles. When holding constant for sale type, model-year age, mileage and model class segment, prices were down on a year-over-year basis for both midsize cars and midsize SUV/CUVs. Car prices dipped by $43 to $11,513 while prices for those SUVs and CUVs dropped by $222 to settle $20,236.
“As anticipated in last month’s Kommentary, the ‘lift’ in wholesale prices from Hurricanes Harvey and Irma, particularly for trucks, is over,” Kontos reiterated.
Kontos went on to mention that average wholesale prices for used vehicles remarketed by manufacturers in January softened by 3.7 percent month-over-month but rose 7.9 percent year-over-year.
He noted prices for fleet/lease consignors were up 4.1 percent sequentially but down 0.3 percent annually.
Finally, Kontos added that average prices for dealer consignors were down 1.7 percent versus December and down 0.6 percent relative to January of last year.
Kontos elaborated about the wholesale market in the video available here and at the top of this page.
ADESA Wholesale Used-Vehicle Price Trends
| |
Average |
Price |
($/Unit) |
Latest |
Month Versus |
| |
January 2018 |
December 2017 |
January 2017 |
Prior Month |
Prior Year |
| |
|
|
|
|
|
| Total All Vehicles |
$10,980 |
$10,804 |
$10,945 |
1.6% |
0.3% |
| |
|
|
|
|
|
| Total Cars |
$8,751 |
$8,502 |
$8,867 |
2.9% |
-1.3% |
| Compact Car |
$6,698 |
$6,452 |
$6,639 |
3.8% |
0.9% |
| Midsize Car |
$7,880 |
$7,651 |
$8,044 |
3.0% |
-2.0% |
| Full-size Car |
$7,853 |
$7,551 |
$8,300 |
4.0% |
-5.4% |
| Luxury Car |
$13,170 |
$12,959 |
$13,472 |
1.6% |
-2.2% |
| Sporty Car |
$13,987 |
$13,846 |
$13,041 |
1.0% |
7.3% |
| |
|
|
|
|
|
| Total Trucks |
$13,074 |
$12,966 |
$12,990 |
0.8% |
0.6% |
| Minivan |
$9,048 |
$8,891 |
$9,289 |
1.8% |
-2.6% |
| Full-size Van |
$12,980 |
$12,619 |
$12,430 |
2.9% |
4.4% |
| Compact SUV/CUV |
$10,680 |
$10,508 |
$10,762 |
1.6% |
-0.8% |
| Midsize SUV/CUV |
$11,578 |
$11,148 |
$11,854 |
3.9% |
-2.3% |
| Full-size SUV/CUV |
$14,648 |
$14,856 |
$13,715 |
-1.4% |
6.8% |
| Luxury SUV/CUV |
$18,446 |
$18,711 |
$18,697 |
-1.4% |
-1.3% |
| Compact Pickup |
$9,306 |
$9,209 |
$8,954 |
1.1% |
3.9% |
| Full-size Pickup |
$16,190 |
$16,189 |
$16,039 |
0.0% |
0.9% |
Source: ADESA Analytical Services.
Pitchers and catchers already are on hand at spring training to get ready for the upcoming baseball season, and the auction world appears to be in spring mode, too.
Editors highlighted their latest Black Book Market Insights report showed a continuation of early spring season. Many car segments remained unchanged in their depreciation levels last week while trucks saw a larger price declines.
“Tax season demand is starting to show up at the auto auctions as lower value vehicles hold prices well,” said Anil Goyal, Black Book’s executive vice president of operations.
Volume-weighted, Black Book determined overall car segment values decreased by 0.23 percent last week, much better than the average weekly decrease of 0.47 percent in values spotted during the previous four weeks.
Editors pointed out that the compact car, subcompact car, midsize car and full-size car segments performed the best among all car segments with values holding still.
Again looking at volume-weighted information, Black Book indicated overall truck segment values — including pickups, SUVs, and vans softened by 0.43 percent last week, similar to the average weekly drop of 0.45 percent in values recorded during the previous four weeks.
Editors added the compact van, small pickup, full-size van, and compact crossover/SUV segments performed the best among all the truck segments.
Turning next to the highlights of what Black Book’s representatives stationed at more than 50 auctions heard in the lanes, perhaps dealers down in Texas are still trying to get their inventory back in order from Hurricane Harvey.
“Dealers are making more comments about the high prices at the auction but continue to pay up for the units that they need,” Black Book’s lane watcher in the Lone Star State said.
Out in California, the scene seemed to be somewhat similar with the representative sharing, “The activity in our market has been good and we’ve had some strong auctions.”
Moving to the Southeast, activity in one specific lane at a South Carolina auction attracted the attention of Black Book’s staff.
“The dealer lanes were slow as the sellers were holding their floor prices. On the other hand, the fleet companies were there to sell and were successful in doing so,” the lane watcher said.
Up in Michigan, dealers are on the hunt for bargains.
“Our market has seen a slight uptick. The strongest interest and activity has been in the vehicles under $10,000,” Black Book’s representative in Michigan said.
Finally in Pennsylvania, it appears dealers are eager for potential buyers to secure federal tax refunds.
“It’s been a difficult couple of months but more money in the consumers’ pockets will certainly be a positive influence on the market,” Black Book lane watcher in the Keystone State said.
As analysts confirmed a dip in January, J.D. Power Valuation Services is projecting an uptick in wholesale vehicle prices in February.
According to the latest installment of Guidelines, J.D. Power Valuation Services is expecting that wholesale prices of vehicles up to 8 years old will edge higher by 0.3 percent. If the movement happens as predicted, it would reverse what analysts recorded last February, which was a 0.9-percent decline.
Analysts also reiterated their full-year forecast remains for prices to remain steady by the time 2018 closes when compared to how 2017 unfolded.
With regard to the opening month of 2018, J.D. Power Valuation Services indicated that January prices for those units up to 8 years old fell by an average of 0.6 percent. As a result, the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index declined slightly as the reading settled at 114.2, which turned out to be a 0.5-percent dip.
What analysts called, “typical for this time of year,” January losses at the segment level were led by premium categories. They noticed wholesale prices for luxury midsize cars dropped by 3.1 percent year-over-year. This particular segment has been impacted by a boost in volume of 3-year-old units, primarily 2015 models such as the Lexus GS and Audi A6.
Volume is up 95 percent and 86 percent year-over-year, respectively, for those two particular high-line units, triggering price sags of 3 percent and 4 percent.
Two other premium segments posted notable price declines in January as prices for luxury compact cars tailed off by 2 percent and prices for luxury compact utilities softened by 1.8 percent.
“While slightly elevated, these losses were more in line with what typically occurs for the period,” analysts said in Guidelines.
“Remaining premium losses were scattered and more severe than the industry average for the month,” they added, while noting prices for luxury midsize utilities dipped by 1.3 percent and prices for luxury large utilities edged 0.9 percent lower.
Turning over to what J.D. Power Valuation Services classifies as the mainstream part of the wholesale market, analysts noted that, “While large pickup prices continue to be strong, the segment is showing signs of losing momentum.”
Large pickup prices dropped by 1.7 percent in January, stretching a streak of declines to four months in a row. One particular model — the RAM 1500 — helped to extend the downward stretch as volume for these trucks jumped 68 percent in January, causing a 3.1-percent price decrease.
J.D. Power Valuation Services also noted that prices for large utilities dropped by 1.7 percent in January, as well. Not far off that pace, midsize truck prices softened by 1.3 percent.
Conversely, prices for compact cars and subcompact cars produces the only price increases in January as the Guidelines report indicated they ticked up by 0.2 percent and 1.0 percent, respectively.
Closing the mainstream market discussion, analysts shared the prices for midsize vans sagged by 0.9 percent while prices for midsize cars edged just 0.1 percent lower.
Perhaps not to the surprise level of a woman being given an engagement ring on Valentine’s Day, but some wholesale market observers might slightly raise their collective eyebrow about current car prices.
Based on data generated during the early stages of the spring selling season, Black Book noticed that cars holding retention better than trucks.
According to this week’s Black Book Market Insights report, volume-weighted data showed overall car segment values decreased by just 0.20 percent, much better than the average weekly decrease of 0.58 percent in values over the previous four weeks.
Editors pointed out that the compact car segment performed the best among all car segments, with values holding still from a week earlier.
Again looking at volume-weighted information, Black Book determined overall truck segment values (including pickups, SUVs, and vans) decreased by 0.35 percent last week, slightly better than the average weekly decrease of 0.46 percent in values over the previous four weeks.
Editors mentioned the full-size crossover/SUV and full-size luxury crossover/SUV segments performed the best among all the truck segments.
“Market performance is the best so far this year with improving sales rates at auto auctions and tax-season vehicles fetching good prices,” said Anil Goyal, Black Book’s executive vice president of operations.
And speaking of sales rates, Black Book’s representative watching activity from the lanes of an auction in New York collected the observations of the operation’s general manager, who mentioned that trend, too.
“Our commercial accounts are selling at a high percentage and the volumes continue to be elevated,” the general manager told Black Book.
“Dealer consignment is the area that we continue to work on as our volumes have been dropping for quite a while. Overall we are experiencing sales in the 55-percent sold range,” the GM added.
Perhaps reinforcing the price metrics for cars, Black Book’s representative stationed in the Southeast shared anecdotes that could provide dealers more insight into what’s happening.
Out of Georgia, the recap was, “It could be a by-product of tax season, but the market is picking up on midsize cars. Overall, buyers are being selective and offering very low starting bids.”
And in Florida, the representative noted, “Rentals and off-lease vehicles sold well as did the clean older cars.”
Out West, the lanes are busy, too, as this anecdote from Colorado describes. “The market is much better than recent weeks. Trucks are performing well and the dealers are in a buying mood,” Black Book’s representative said.
The not-so-upbeat report collected by Black Book originated in Pennsylvania. The lane watcher said, “Retail has not been good for the last couple of months. It seems like this downturn is a result of escalating new-car prices along with the adverse weather conditions we have experienced.”
Black Book continues to see sprouts of the spring selling season germinate.
On this heels of updating its Used Vehicle Retention Index for January, this week’s Black Book Market Insights report showed some possible early signs of the spring selling season, with cars showing lower depreciation than trucks.
“It was a good week for mainstream car segments as tax season buying has begun with strong sales being reported at the auctions,” said Anil Goyal, executive vice president of operations at Black Book.
Volume-weighted, editors indicated that overall car segment values declined by 0.34 percent last week. In comparison, the market values for cars had decreased on average by 0.64 percent per week in the previous four weeks.
Among cars, Black Book noticed midsize car segment performed the best with values remaining nearly flat.
Again volume-weighted, editors determined overall truck segment values — including pickups, SUVs and vans — decreased by 0.50 percent last week, same as the average decrease of 0.50 percent per week in the previous four weeks.
Within the truck space, Black Book mentioned the full-size crossover/SUV segment performed the worst with values declining by 1.13 percent last week.
As Goyal referenced, dealers are starting to see retail activity improve, resulting in the need to go to the wholesale market to acquire necessary inventory.
In Indiana, Black Book’s lane watcher reported, “Higher quality vehicles continue to do well in all price ranges. Retail in our area has picked up a bit, which bodes well for a market climb.”
Another report out of the Midwest included similar themes as a Black Book representative shared, “The market is starting to make a positive move a little bit earlier than normal and should remain strong for quite a while.”
And in Pennsylvania, dealer also are seeing vehicles roll over the curb. Black Book’s auction attendee mentioned, “Several dealers indicated that business picked up last week, and judging by the quantity of buyers in the lanes and online this week I would have to agree.”
Moving to the South, Black Book’s other two reports from the lanes share more details about the approach of spring-market conditions.
From Florida: “Dealers were more aggressively trying to purchase inventory, but they were careful not to overpay.”
From Georgia: “We had a good sale today with a lot of activity in the lanes. Vehicles under around $12,000 were in the highest demand.”
Update on the specialty markets
As they do on a monthly basis, Black Book editors shared their assessment of the specialty markets. Here is the latest rundown:
—Collectible Cars: Black Book emphasized that January is considered a bellwether month for the collectible car industry, and “this year did not disappoint.”
Editors added, “Mecum got the ball rolling with nearly $100 million in total sales in Kissimmee, and the usual Arizona players kicked in nearly $250 million more.”
—Recreational Vehicles: Black Book reported RV values at auction, both motorized and towable, were stable last month, with changes of less than 2 percent.
—Powersports: Editors explained February brings a “mixed bag” to values in the powersports market.
After last month’s above average market performance for this time of year, Black Book noted only the cruiser and snowmobile segments exhibit gains for a second consecutive month.
—Heavy Duty: Editors mentioned the word in January that there was a shortage of trucks available to haul freight apparently caused an already volatile value trend to take an upward swing resulting in strong wholesale values.
—Medium Duty: Overall, Black Book noted the medium duty market stabilized during the last couple of months of 2017, and that trend continues for the first part of 2018.
