Everyone loves a bargain, right? That situation has been the case in the lanes especially with spring beginning to sprout, according to this week’s edition of Black Book Market Insights report.
Experts and auction observers noted that searches for clean affordable inventory is intensifying with retail activity beginning to improve in some areas of the country.
“The lower priced vehicles are getting the most attention at the auctions, which is typical for this time of the year,” Black Book executive vice president of operations Anil Goyal said.
“On the other hand, the luxury sedan prices continue to drop at a higher rate,” he added in the latest report.
Volume-weighted, Black Book reported that overall car segment values decreased by 0.51 percent last week. That's higher than the previous four-week average seen by editors, who pinpointed that figure at an average drop of 0.44 percent.
As Goyal referenced, the luxury car and near luxury car segments experienced the biggest drops, sliding by $172 and $107, respectively.
Again examining volume-weighted information, Black Book found that overall truck segment values (including pickups, SUVs and vans) softened by 0.49 percent last week. Like cars, that reading was higher than the four-week average dip, which editors had at 0.41 percent.
Among trucks, the compact luxury crossover/SUV and sub-compact crossover segments sustained the most notable declines, dropping by $189 and $99, respectively.
Black Book representatives stationed at nearly 60 sales nationwide elaborated about why dealers are in bargain-hunt mode nowadays. Here is the rundown:
— From California: “We had a strong sale today with a noticeable increase in attendance.”
— From Michigan: “The wholesale market is trending up, but retail is still quite the challenge in and around the Detroit area.”
— From Georgia: “Attendance was good today and the biggest take-away was that the older, less expensive vehicles brought strong prices.”
— From Washington: “Prices seem to be more stable than in recent weeks. However, the quality of the vehicles was down.”
— From Massachusetts: “The dealers reported that retail has finally improved, which probably spurred the higher transaction prices at the auction.”