Enthusiasm abounds
Hello and welcome to this week’s edition of Beggs on the Used Car Market.
Last week I mentioned our attendance in Las Vegas at the annual NADA Convention and Expo and the ATD Expo. On the car side of the show the enthusiasm and attitude of the dealers definitely pushed up the excitement among the exhibitors. It was the best convention for attendance levels and focus by all attendees for at least the past 4 years. Even the final day of the show on Monday was busy with inquires about our products and services.
The ATD Expo was being held in conjunction with the car dealers meetings for the first time. There was great attendance at the meetings and the hospitality events. The truck dealers were just as interested in tools to help their businesses, but the actual truck expo seemed to be overwhelmed by the quantity and size of the auto exhibit area.
Later this week several of the Black Book team, including our motorcycle and powersports focused editor, Scott Yarbrough, and I will be in Indianapolis for the annual Dealer Expo. This show will be similar in the number of dealers and exhibitors as last week’s NADA show. We look forward to talking with many dealers who face the same needs for tools to use in their businesses. There are great auto dealers who are also active and successful motorcycle dealers. If you are in Indy this coming weekend please stop by our booth, #5029. We look forward to showing the mobile apps for the motorcycle and powersports market, including the just released Android solution. We hope the enthusiasm of the powersports dealers will be as strong as the auto dealers were last week.
The market for the past week three weeks has been on a consistent pattern of adjustments being increases hovering around 41%, with the average number of vehicles adjusted per day going from just under 1300 per day 3 weeks ago, to slightly over 1400, to 1525 per day this past week.
By segment type, the car segments declined an average of $32, almost identical to the -$31 average each week since the first of 2012. Although all 10 segments declined for the second consecutive week, the Full-size Cars (FSC), the Entry Level Cars (ELC) and the Compact Cars (SCC) all declined $13 or less for the week.
The truck segments continued to trend at more stable levels than the cars. This week at an average -$14 change is also consistent to the -$15 average change since the first week of 2012. This week 3 segments increased, while 2 others had no change for the week. Those increasing were the Full-size Crossovers (FXU) at $21, the Full-size SUVs (FSU) at $8, and the Cargo Mini-vans (MVC) at $6. There were also 3 segments with only single digit declines. With gas prices at the pump continuing to gradually climb, the trend in trucks is actually following the consumer demand for the functionality of these vehicles and the limited supplies from which to choose. When compared to the truck changes from one year ago, the level of adjustments are in a very similar pattern. For the car segments the level of change over the past 3 weeks is just over twice the decline of year ago levels.
Over the week there were indications that the tax season money is closer to appearing across the country. Some dealers feel we are still 2 weeks away from a full push up for the more affordable cars. A few auctioneers say the activity is much improved with tax money already prevalent at many auctions.
For the electronic customers, those getting their market driven values in data files, on their desktop computers through an internet suite product or the handheld mobile applications, it is time to keep your eyes on the 2012 used model listings. We market priced another five 2012 models including the Hyundai Accent and Sonata, Ford Taurus, Kia Sportage, and a Nissan NV2500 model. We also posted market driven values on some lower volume 2011 models for the first time.
If you see us on the auction lanes or at the Dealer Expo this week, let us know what we can do to better serve your needs. And don’t forget to honor that special person in your life on Valentine’s Day! Have a great week.
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