With one auction general manager describing the impact of tax refunds in the lanes, this week’s Black Book Market Insights report indicated the car segment retaining its value better than the truck segment as a whole.
However, editors pointed out that compact vans increased their value by 1.17 percent in the truck department, outperforming all other vehicle segments.
“The various car segments experienced broad market strength, particularly within compact, midsize and full-size models. Increased interest from dealers and higher sale percentages were noted in the auction lanes last week,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
Volume-weighted, the report said overall car segment values decreased by only 0.17 percent last week, lower than the depreciation rate of 0.46 percent reported during the previous four weeks.
The prestige luxury car and sub-compact car segments declined the most, sliding by 0.99 percent and 0.58 percent, respectively.
Again considering volume-weighted data, editors found that overall truck segment values including pickup, SUVs and vans decreased by 0.36 percent last week, similar to the depreciation rate of 0.37 percent spotted in the previous four weeks.
As mentioned, compact van values generated an increase of 1.17 percent, while the midsize luxury crossover/SUV segment posted the most decline at 0.77 percent.
Black Book’s representative caught up with an auction general manager in Pennsylvania after last week’s sale and reported this recap back to headquarters: “Great sale today. Tax money has caused percentages and values to be very high. Anything $7,000 or less with decent miles sells. Anything.”
Trucks also were in demand in other parts of the country as Black Book’s lane watcher in Illinois relayed, “Lots of snow on the cars coming through in Chicago today, but the prices were stable and especially good on full-size trucks.”
A similar scene unfolded in Tennessee as the observer reported, “Prices were up from last week with half ton pick-up trucks in demand.”
While not specifically mentioning tax refunds, Black Book’s representative in Ohio shared upbeat assessments, saying, “Activity was really good today on almost every consigned vehicle. Several dealers presented a very positive outlook for the spring market.”
Even further north, the positive vibe continued as the story coming out of Massachusetts was, “Prices exceptionally strong in Boston today. Sold percentages had the remarketers smiling.”
The only remotely negative anecdote passed back to Black Book originated in Texas where the observer said, “Watched a closed sale today and while they sold at a high percentage the values weren’t as strong as normal for a closed-sale environment.”