Sporty cars and trucks were the only segments to withstand stronger downward pressure on wholesale prices at auctions.
These two groups remained ahead for price retention, while most other car values experienced steeper declines.
In fact, car prices fell by 0.76 percent or $94, which is the largest decline seen in 52 weeks, according to Black Book’s latest Market Insights Report.
“Mainstream car values declined sharply with the arrival of summer while most truck segments continue to show steady depreciation trends,” said Anil Goyal, vice president of automotive valuation and analytics.
Truck segments saw an overall decline in price of 0.25 percent or $41.
“The Black Book editors and survey personnel have identified select trends this week that show where dealers and remarketers need to pay close attention to inventory management strategies,” the report stated. “Volume-heavy segments, summer-favorite models and late-model units from off-rental are all having an impact on supply currently.”
For example, popular, volume-heavy segments such as the compact, entry level, entry midsize, full-size and upper midsize cars, all saw prices drop by about 1 percent last week.
Black Book analysts said they also weren’t surprised that sporty cars are in high demand as we enter the summer months, putting positive pressure on auction rates. Sporty cars bucked the average trend and only saw a 0.26-percent or $42 decline last week.
Trucks once again performed better in the lanes last week, with pickups and SUVs outpacing the car segments.
The compact SUV segment even saw a slight price increase of 0.11 percent or $21 — the only segment to see prices rise last week. Full-size SUVs also performed well with a slight decline of 0.13 percent or $25.
Compact pickups (down 0.45 percent or $67), midsize pickups (down 0.31 percent or $38) and the full-size pickups (down 0.31 percent or $59) also performed better than the industry average.
Once again, Black Book pointed out buyers in the lanes are being very selective on 2014 and 2015 models and many no-sales passed through the lanes last week.
Buyers are being very selective on 2014 and 2015 models, and many have been chalked up as “no-sales” this past week.
This could be due in part to just how many of these units are in the lanes, as Black Book personnel overheard a buyer from Nashville, Tenn., say, “Rentals are not doing well as there are too many available.”
Comments also reflected dropping prices as we hit the summer slowdown. A buyer from Washington said, “Good sale with plenty of product, but prices are down a little on many.”