LAWRENCEVILLE, Ga. – While the latest Black Book Market Insights report showed relatively mild depreciation last week among the majority of car and truck segments, a handful of dealers across the country feel prices will hold relatively steady until July.
As a dealer in Arizona shared with Black Book the sentiment about prices staying steady until about the summer’s midpoint, a dealer in California added that “the market trend at this location is good with demand still being placed on truck products.”
Demand for trucks was prevalent up North, too; as a dealer in Minnesota remarked, “Truck sales volume still exceeding cars at this location.”
Black Book’s latest report collected two perspectives from dealers in Tennessee. One operator said, “Auction was a little slow today with many no-sales,” as yet another added, “Prices in most lanes seemed to be normal to low. Clean compact cars are in demand but in short supply this week.”
Meanwhile, the ramifications of all the severe weather in Texas started to show up in the lanes as a dealer mentioned, “Dealers and consumers both are receiving insurance claims from all the bad weather and it shows through the increase in auction sales.”
Whether or not the units have been damaged by Mother Nature, Black Book reiterated that depreciation didn’t move dramatically last week. In fact, editors noticed that sporty cars, along with some vans, pickups and utilities, saw an increase in value.
“Most vehicle segments showed fairly stable values last week except for luxury cars and compact vans, which declined at a steeper pace,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
Volume-weighted, Black Book determined that overall car values decreased by only 0.16 percent last week. In comparison, the reading was better than the average depreciation rate of 0.22 percent seen in the previous six weeks.
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