Though 2013 may have started out slow in the lanes, Rick Beggs of Black Book says “the tide may have started to turn.”
After experiencing strength in the middle of November — due in part to demand created by Hurricane Sandy — auction activity “took a slight step back” during the first couple of weeks of January.
But in his latest “Beggs on the Used Car Market” video report, the managing editor shared that this week, “the need to adjust some of the values was less and many vehicles were more stable.”
And for those segments that did see price adjustments, 41 percent needed saw an increase to the published value.
Beggs said this marks the largest percentage of increases in adjustments for the past four weeks.
He also noted that another sign of a “more stable market” was the overall average segment change of both the cars and the trucks. The car segments saw an average price increase of $15, after falling by an average of $64 just last week.
And the average segment decline of the trucks decreased for the third consecutive week, slowing to a drop of $22.
“There were again two truck segments with increasing values and for the first time in the past seven weeks it wasn’t coming from the full-size vans,” Beggs added.
This past week, the compact pickups increased by $7 after a $21 increase the prior week, and the midsize pickups rose by $12.
But, it seems all this growth may come with a caveat.
“Even with the overall numbers consistently showing a strengthening market, several of the summary reports from various auction locations reported factors that would normally be holding the values back,” Beggs said.
To view the video report, see below: