After two weeks of auction sales this year, there has been an increase in attendance and bidding, coupled with a surprising decline in values, according Ricky Beggs of the “Beggs on the Used Car Market.”
This past week, 23 of the 24 vehicle segment types decreased in value. The only positive segment was the small volume cargo versions of the minivan market, which had an increase of $22, said Beggs, managing editor of Black Book.
Overall, car segments decreased an average of -$88 for the week. This was slightly greater than the first week of the year, and also the largest weekly drop since the week ending Nov. 20, 2009.
Within the 14 truck segments, the average change was -$51, the smallest change in the last three weeks. With just under 1,100 vehicles adjusted each day during the last week, 15 percent were actually increases in value. Overall, the average value of all models went down -$99.
The seasonal trend is for values to increase at the beginning of the year, Beggs said. However, “due to the better than normal December activity and value movement, the market could be termed more stable.
“As we observed the bidding and on-lane action, the buyers seemed willing to buy with mostly realistic bids reflective of the current Black Book values. It just seemed that the sellers were hoping and holding out for an early year market increase. You can rest assured one or both sides will make a move in the near future,” Beggs said.