Hello and welcome to this week’s edition of Beggs on the Used Car Market, with insights from Ricky Beggs of Black Book. It is the time of the year where I love the crisp cool mornings, the recent changing of the color of the leaves as they go from green, to yellow, red, orange to brown and finally fall to the ground. It is also that time of the year that I don’t get too warm and fuzzy about when I often go to the office in the dark and leave to return home in the evening and it is also dark. With this we will find some of the retail lots, especially the independent used dealer, who will shorten his or her hours of operations. Has anyone tried to use this as a reason for softening sales and values this time of the year?

We have finally made it to the national price of gas at the sub $3.00 level, just barely, at $2.99, down $.06 from the prior week and now $.27 below the year ago level. The breaking news seems to be that there is not a major reaction to sub $3 gas, or at least not yet. As I looked over the commentary from the Black Book survey personnel reports there were comments ranging from “very active” to “slowing down” to “the older, smaller units doing well” perhaps looking a little ahead to the tax season. The slowing down type comments really should come as no surprise as we are in the middle of November and I bet December will come next. When we get to the truck segments, you will understand the commentary saying ”the 4X4s and trucks are active, doing well and bringing the money”.

As has been the case over the last three months, the Premium Sporty Cars and the three other luxury oriented cars had the largest dollar adjustments ranging from -$120 down to -$84. The largest percentage drop of -1.05% was with the Compact Cars matching their -$79 change. When you look at the segments within the lowest dollar change, they are some of the more fuel efficient models, the Entry Mid-size Cars at -$38 and the Entry Level Cars at -$34. Why not a greater level of depreciation on these as gas hits a four year low? We feel it is because we are not at or near a new record low point since the recession began and the tax season will be upon us just after the first of the year, currently only showing us spots of interest. Also, keep in mind that a several years old, smaller entry type vehicle is a more affordable purchase, sometimes slowing depreciation at a point in time.

The truck market continues to have change levels well under the cars, this past week at -$48 after the prior week change of -$52. The Full-size Vans continue their week over week increases while the Full-size SUVs and Full-size Crossovers took the biggest hits. This week the Luxury SUVs did not track as soft with only a -$54 week over week change, after the four prior weeks dropping from -$104 to -$204.

A couple of us from Black Book will be taking part in the AutoRemarketing sponsored Used Car Week conferences in Las Vegas this week. I look forward to the insight from the dealers, remarketers and auto lenders throughout the sessions and the many hallway conversations. If you are attending flag me down and share your thoughts on the market.