While the September used-vehicle sales projection might not show it, dealers are certainly bracing for additional sales stemming from hurricane-damaged vehicles that need to be replaced.
And it’s reflecting in how prices are moving, according to the latest this week’s Black Book Market Insights report. Editors found that prices for both compact cars and crossovers were strong as dealers, especially in Texas, search from long distances for inventory that hasn’t been touched by floodwaters.
“Nearly all segments besides luxury vehicles and sporty cars performed well last week as buyers from Texas bid up prices to acquire replacement vehicles,” said Anil Goyal, Black Boo’s senior vice president of automotive valuation and analytics, who also is one of the many experts on the docket for Used Car Week, which begins on Nov. 13 in Palm Springs, Calif.
Based on volume-weighted data, Black Book determined overall car segment values decreased by 0.19 percent last week, much better than the average weekly decrease of 0.42 percent in values spotted during the previous four weeks.
Editors said, “Compact cars performed the best while sub-compact, midsize, and full-size car values were strong as well with no depreciation last week.”
Again looking at volume-weighted information, Black Book found that the overall truck segment values — including pickups, SUVs, and vans — decreased by 0.10 percent last week; an improvement compared to the average weekly decrease of 0.19 percent in values noticed during the previous four weeks.
Subcompact crossover and compact crossover/SUV segments increased the most among truck segments by 0.46 percent and 0.39 percent, respectively.
Turning next to what Black Book’s representatives noticed in the lanes, observers watched Lone Star State dealers hunt for vehicles. Apparently Texas dealers are looking to auctions in Georgia to find what they need.
“It was a mixed bag at the auction this week. It seemed like there was no in-between as the reps were either selling everything or selling very few. The lanes that were selling were heavily influenced by the Texas online buyers,” said Black Book’s lane watcher stationed in Georgia.
Black Book’s representative stationed in Texas added, “The sales percentages and prices are high as you would expect after Hurricane Harvey. Dealers say that they will have to be diligent in their inspections for the next few months as damaged or damage repaired vehicles will be available.”
Even on the West Coast, hurricane impact can be seen as Black Book’s observer in California mentioned, “Several dealers stated that they are buying vehicles that will be loaded up and transported east to Texas.”
It’s also happening in the Midwest since Black Book learned from Wisconsin, “While local buying is not great, the internet sales are doing quite well due to the replacement vehicles being purchased for Texas.”
Also out of the nation’s midsection, Black Book’s other anecdote from Illinois mentioned, “There was strong bidding here, and the prices continue to hold their own. All in all a pretty good fall market.”