While an auction general manager in Texas shared short-term expectations for what might be happening in the lanes, the newest Black Book Market Insights report also highlighted a noteworthy development that just occurred.
Editors determined truck values stabilized last week following several weeks of volatility, while cars saw higher demand at auction.
“Sedans drop in value, but sporty cars see a seasonal increase with summer around the corner. Luxury cars and crossovers experience a larger decline,” said Anil Goyal, executive vice president of operations at Black Book.
Volume-weighted, editors indicated overall car segment values decreased by 0.27 percent last week. In comparison, values had increased on average by 0.12 percent per week during the previous four weeks.
Within cars, Black Book noticed the sporty car segment increased the most in value last week, rising by 0.18 percent.
Again volume-weighted, editors noticed overall truck segment values (including pickups, SUVs, and vans) decreased by just 0.05 percent last week, same as the average drop per week in the previous four weeks.
Among trucks, Black Book said the sub-compact crossover segment increased the most in value last week, moving 0.22 percent higher.
Turning next to what Black Book’s representatives captured at sales nationwide, one lane watcher caught up with a general manager of an auction in Texas.
“The nicer, more expensive vehicles have softened here. Our market feels like it has another month or so before we see increased volatility across the board,” the GM said.
The scene at a couple of locations revealed how the hammer isn’t falling with as much frequency as it did during the height of the spring market.
Out of Georgia: “There was an abundance of no-sales in both the rental/lease lanes as well as the dealer lanes. In addition, the less expensive older vehicles that sold well recently experienced sporadic sales.”
Out of Michigan: “Consignment is down, but anything nice sells and for good money. Retail remains good but certainly not great.”
And speaking of retail, what’s occurring in Tennessee is perhaps a reflection of dealership activity.
“Sub-compact and units under $10,000 are in demand. The higher priced vehicles are much harder to turn,” the lane watcher in the Volunteer State said.
Finally, the report out of Pennsylvania might have given another glimpse of what prices at the pump are doing to dealer buying activity at the auction.
“A dealer out of New York who typically buys trucks stated that he is purchasing more passenger cars than he can remember,” the Black Book representative said.