Here’s an insightful piece from the good folks at AutoRemarketing. It looks like used vehicle retail prices are on an up tick. Let’s hope this turns into a trend.
March 19, 2013 | GAINESVILLE, Ga., and BANDON, Ore.
By Staff Writer Sarah Rubenoff
As we near the first day of spring, the action in the lanes seems to be changing as fast as the weather. According to Black Book’s Ricky Beggs, this past week saw the second highest number of vehicle prices adjusted over a weekly period since the week ending Sept. 14, 2012.
Over 2,350 vehicles were adjusted on average each day of the week, in what Black Book managing editor called a “tremendous amount of activity within the wholesale market.”
And the upward momentum continues; 63 percent of the adjustments last week were increases, edging close to “the levels of one year ago when it came in at 67 percent,” Beggs said.
And CNW reported some climbs in used retail prices, as well. In the firm’s March Retail Automotive Summary released last week, president Art Spinella said used prices are “seeing a bit of daylight.”
March is seeing a 5.3-percent increase in transaction prices for franchised dealers versus February prices.
“While still a bit more than 1 percent behind a year ago, it could well be a good sign if this turns into a trend,” Spinella reported.
Independent dealers are also seeing a month-over-month increase in transaction prices, rising by 5.1 percent.
And this may bode wells for dealers as they face rising auction prices for these very same used units.
Breaking the wholesale price movement down by segment, Beggs reported the average segment change for the cars — a decrease of $8 — was the best level of change since the week ending May 4 of last year, which was also at a (negative) $8 average change, according to Beggs.
Five of the 10 car segments Black Book tracks increased in price, led by the near-luxury level cars. These rose in price by $32.
Also a big climber, the entry midsize cars saw an rise of $23, “now having increased for four consecutive weeks,” said Beggs.
For trucks, the average change was a decrease of $7 overall, which may have something to do with falling gas prices that past couple of weeks.
“This was the first time since the week ending April 13, 2012 where both the cars and the trucks had single-digit change levels at the same time,” Beggs said.
Specifically, this past week, six of the fourteen truck segments were on the positive movement.
“The full-size pickups led the way at +$52, the most positive truck segment for the second week running,” Beggs reported.
Compact SUVs saw a rise of $16, marking the fifth week in a row this segment has seen price gains.
The compact crossovers and the cargo minivans have both increased for three consecutive weeks, as well.
Read the full story here.
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John Paul Strong
John Paul Strong combines his two decades of automotive marketing experience with a team of more than 150 professionals as owner and CEO of Strong Automotive.
