With wholesale prices softening as summer officially arrives this week, Black Book is noticing that dealer activity is rebounding a bit at the auction even if action at their showrooms is not at an optimum level.
This week’s Market Insights report showed that values for both cars and trucks decreased at rates much above the average editors spotted during the past four weeks.
“Car segments are in a steady depreciation pattern, in line with seasonality. SUVs and pickups (except for luxury) show strong retention,” Black Book executive vice president of operations Anil Goyal said in the latest report.
Volume-weighted, editors indicated overall car segment values decreased by 0.46% last week. That figure is more than double what Black Book computed at the four-week average (down by 0.22%).
In the car space, Black Book noticed values of subcompact cars decreased the most, dropping by 0.90%
Again volume-weighted, editors determined overall truck segment values (including pickups, SUVs and vans) softened by 0.16% a week ago. Like with cars, that truck reading more than doubled the four-week average that came in at 0.07%.
Among trucks, Black Book found that values of subcompact luxury crossovers softened the most, sliding by 1.10%.
Turning next to the anecdotes Black Book representatives collected by attending nearly 60 sales nationwide, lane watchers shared these comments, including:
— From California: “The sale was active both on the floor and through the simulcast. Prices are holding firm for the most part.”
— From South Carolina: “We had a good crowd throughout the sale which was encouraging. Small and midsize SUVs were selling well today.”
— From Michigan: “Dealers are saying that difficulty with inventory acquisition along with below average retail business is currently holding them back.”
— From Illinois: “Prices were strong across the board today. Due to low inventories, even the vehicles with hail damage brought good money.”