Basic mathematics says that five times any number except zero can result in a significant figure. While five times one equals five, five times 500 equals 2,500. And five times … OK, let’s not have to retrieve the calculator on your smartphone.
However, Black Book executive vice president of operations Anil Goyal broke out the math concept of five times an amount when describing depreciation trends highlighted in this week’s Market Insights Report.
“The overall used-vehicle market is doing extremely well, bucking the seasonal trend seen in previous years. This time last year, the weekly drop in values was five times the rate seen today,” said.
Volume-weighted, Black Book reported that overall car segment values decreased by just 0.11 percent last week. In comparison, editors mentioned values had decreased at a rate of 0.20 percent per week during the previous four weeks.
Among car segments, Black Book indicated prestige luxury car values decreased the most last week, declining by 0.63 percent or $221.
Again volume-weighted, editors noted that overall truck segment values (including pickups, SUVs, and vans) softened by only 0.10 percent last week. Like among cars, Black Book said truck values also had dropped at a rate of 0.20 percent per week during the previous four weeks.
Within truck segments, Black Book noticed that full-size van values declined the most last week, dropping by 0.41 percent or $61.
Perhaps Black Book’s observers at nearly 60 sales nationwide did some quick math figures as they watched vehicles go over the block while collecting anecdotes from the lanes.
Along with watching prices, the observations also captured what else is happening at dealerships as well as their neighborhoods.
— From California: “The market is very good, although most of the vehicles coming through the auction lanes are covered in ash due to the widespread forest fires.”
— From Georgia: “Plenty of buyers and inventory. Auctioneers are not having to work hard at receiving bids.”
— From Michigan: “Prices continue to remain strong. Trucks and cargo vans are attracting a lot of the attention. Older vehicles that look good and have reasonable miles are doing well due to back-to-school buying.”
— From Florida: “Dealers are searching for acceptable mileage and good vehicle history. Lots of no-sales on the dealer lanes but the financial lanes did really well.”