Rental Unit Mileage Increases, While Wholesale Activity, Prices Shift

Prices and dealer activity at auctions often changed from day-to-day during the week of May 24, depending on the specific auction and vehicle type, said Black Book’s Ricky Beggs.

In his latest “Beggs on the Market” video report, Beggs said auction prices for Chrysler have been relatively steady and actually showed an increase for the week, even though Chrysler recently filed for bankruptcy. In reviewing 152 models of the 2003 to 2008 model years of Chrysler, Dodge and Jeep products, the average change for the week was up $28.52, Beggs said.

Beggs added that the mileage of rental units in the market has climbed significantly.

“Reports have shown much higher levels of mileage on cars within the rental market. This type vehicle and mileage level, Beggs added, is becoming a little more acceptable, he commented.

“There is a market, at the right price, for 2008 models with 46,000 to 53,000 miles,” Beggs stated.

Beggs, who is Black Book’s vice president and managing editor, discussed the overall wholesale market, saying that although conditions got stronger toward the end of the week, any adjustments were still made throughout the period.

Prices of the 10 car segments that Black Book examines fell an average of $13. The 14 truck segments climbed $14 on average, however. Full-size SUVs showed the largest increase (up $78), while prestige luxury cars had the heaviest downward adjustment at $42.

Beggs said after attending an auction that bidding wasn’t as aggressive as it has been. But he added that dealers are not afraid to “step up” on an extra clean condition unit and pay whatever it takes. It takes at least two dealers feeling strongly about a vehicle for the bidding to go up.

With the overall decrease in used-vehicle supply compared to last year, the extra clean units have become harder to find, which has often caused final bid levels to increase, Beggs noted.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>