With 70- to 80-percent sales conversion rates and more than half the price changes in the lanes being increases last week, it seems warmer weather isn’t the only harbinger of spring.
“Spring season is alive and well,” in the lanes, as well, says Black Book's Ricky Beggs.
With 53 percent of prices changes made last week being increases, Beggs, editorial director and senior vice president of Black Book, said this represents “three straight weeks of the best market activity and results since almost year-ago levels.”
Amid all the positive activity, Beggs pointed out a few trends that stood out last week in his latest “Beggs on the Used Car Market” video report.
First off, the three car segments that saw overall increases two weeks ago — the upper midsize cars, the entry midsize cars and the entry level cars — all saw price hikes again this past week.
But one segment joined the rising ranks, as well: compact cars saw an average jump up of $10 last week.
The full-size cars are also “showing stability,” Beggs said, with only a $7 decline last week.
On the other hand, once again, the prestige luxury cars saw the biggest decline last week, falling by an average of $201. The premium sporty cars also put up a weak showing, falling by $107 last week.
These numbers may not be surprising as Beggs pointed out, “With the weather continuing to wreak havoc overall, we are sure not thinking about it being a sporty car market right now.”
The overall decline of $39 for the cars is greater than the prior week, but still the second lowest level weekly change since the week ending Dec. 6, according to Black Book data.
The truck market also continues to perform well, with an average price decline of $10 last week. This is the lowest level of decline seen since May 10 of last year, when the trucks saw a price spike of $2.
The five segments with increasing prices last week were led by the full-size vans — both cargo and passenger versions — as well as the compact SUVs with a rise of $47, and the midsize SUVs, rising by just $1
“Another sign of a positive moving market is that 10 of the 14 truck segments either were positive levels of change or the declining average segment change was a lesser decline than the prior week,” Beggs concluded.