Black Book is seeing car values that bloomed during the spring market now wilting in the summer heat.
This week’s Black Book Market Insights report indicated nearly all car segments sustained a significant decline in values, signaling summer seasonality.
Conversely, editors noticed the truck space had three segments finish with an increase in value during the week.
“Depreciation in car segments has increased after the Spring season. Pickup trucks, which usually retain strength in the summer months, went up in values last week,” Black Book executive vice president of operations Anil Goyal said in the latest report.
According to volume-weighted data, Black Book determined overall car segment values decreased by 0.44% last week. That’s up from the four-week average decline of 0.32%.
Values of compact cars and prestige luxury cars dropped the most, sliding by 0.68% and 0.69%, respectively.
Again based on volume-weighted information, editors learned that overall truck segment values (including pickups, SUVs, and vans) dipped by 0.12% last week. That’s 2 basis points above the four-week average drop of 0.10%.
Among trucks, values of subcompact crossovers decreased the most, sliding by 0.72%.
Turning next to what Black Book observers spotted when watching the lanes at nearly 60 sales nationwide, a representative connected with an independent dealer in Arizona who described the competition for inventory.
“The price range that we look for our independent store is becoming more difficult to source,” the dealer said. “We look for clean vehicles in the $10,000 to $17,000 range and find ourselves competing more and more with the franchise stores as well as the independent dealers.”
In other parts of the country, active bidding by franchised and independent stores seemed to be brisk. Here is Black Book’s latest anecdotes:
—From Texas: “The auction inventory was low today, which kept the values up as bidding was brisk.”
—From Florida: “The market seemed slightly lower. The rental and lease lanes did well, but they seemed to have lowered their floors to make the deal.”
—From Illinois: “One of the buyers for a large retail chain of stores is reporting that business is good, and the prices remain elevated.”