Spring Season Strength Appears To Be Over
Welcome to this week’s edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight from the auction lanes. Click here to download the full report.
The Black Book editors began to see signs of a tiring spring tax season in last week’s report, and this week those signs have become more obvious. This week’s data showed the largest drop off of the spring for car and truck segments.
In particular focus this week, the Full-Size Car and Upper Mid-Size Car segments have continued to perform well in the used car market. Three drivers here may be that the low gas prices continue to place stress on smaller car segments; the continuously improving economy is incentivizing buyers to consider cars with a little more size; and relatively lower supply of full-size cars as compared to compact cars to meet the increased demand.
“The Spring market strength is starting to wane as most segments showed slight decline or remained flat in wholesale values last week,” said Anil Goyal, Vice President of Automotive Valuation and Analytics.
- Overall, the volume-weighted car values decreased by -0.11% from last week.
- Overall, the volume-weighted truck values were flat from last week.
- All car segments except Full-Size Car and Upper Mid-Size Car dropped in value.
- Most truck segments did not change much except for Full-Size CUV, Full Size Passenger Van and Luxury SUV segments which dropped over 0.4% from last week.
- The Top 3 truck segments with the most cumulative value increase over the last 8 weeks are Compact SUV (+2.7%), Full-Size Pickup (+2.0%) and Full Size Cargo Van (+1.6%).
- The Top 3 car segments with the most cumulative value increase over the last 8 weeks are Upper Mid-Size Car (+1.5%), Entry Level Car (+1.5%) and Compact Car (+1.4%).