Looking at information for the first full week of 2017, the newest Black Book Market Insights Report detailed steeper declines in value for several segments — with three in particular catching editors’ attention most.
Registering the most significant price drops last week were sporty cars, luxury cars and crossovers. Conversely, Black Book noticed compact vans have been able to retain their value “sufficiently” since last week.
“Smaller cars are back in demand at the start of the new year. We expect a good spring season this year for such vehicles. Sporty cars show higher declines due to seasonality,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
Volume weighted, editors indicated overall car segment values decreased by 0.45 percent last week; lower than the average depreciation rate of 0.56 percent seen in the previous four weeks.
Prices in the sporty car, luxury car, premium sporty car and prestige luxury car segments declined the most by 0.87 percent, 0.72 percent, 0.72 percent and 0.71 percent, respectively.
Again, volume weighted, Black Book said overall truck segment values (including pickups, SUVs and vans) decreased by 0.51 percent last week; same as the average depreciation rate of 0.51 percent posted during the previous four weeks.
Editors found that the subcompact crossover, full-size crossover and midsize crossover segments declined the most by 1.36 percent, 0.88 percent and 0.85 percent, respectively.
Black Book representatives mingling in the lanes during the first week of the year focused on dealer mood when reporting back to headquarters
An auction watcher in Tennessee said, “Plenty of dealers here today but consignment was rather low.” A similar scene played out in Missouri as the representative said, “Low consignment today but buyers expect that to change in coming weeks.”
Trucks also another subject often relayed from Black Book representatives.
One in Michigan said, “Clean trucks are doing well but the rest of the market is weak,” as another in Pennsylvania added, “Average market trend here with most attention directed towards trucks.”
A couple of high points in the lanes occurred in Texas and Arizona.
The lane observer in the Lone Star State said, “The market is improving slightly with several consignors having a good day today,” while in Arizona it was a “steady sale today with prices on the high side for this time of year.”
A closing comment also came from Arizona as Black Book’s representative reported that, “Soft late model used sales around here. Used having to compete with new incentives.”