Welcome to this week’s edition of Beggs on the Used Car Market, with data and insight from Black Book on the used car markets. The opening week of college football brought mostly expected results along with a few surprises, and this Bulldog is pleased. And as the new car sales totals were reported this past week, most every manufacturer, along with the franchised dealer body, is pleased with their performance as well. Part of the sales success this past month, and for all of 2014, can be attributed to lease penetration continuing to prosper, as Experian data just reported that 25.3% of all sales were financed as part of a lease contract. This also means used supplies continue to increase, lowering the level of aggressive bidding as there are more desirable units to choose from.

Even though it was a short week due to the Labor Day holiday, there was plenty of data to analyze. The feedback from the auction lanes through the Black Book survey reports gave us two primary type comments. One was a softer market with more no sales. The other still indicates the strong seasonal interest in trucks. As the editors attended various auctions, their on the lanes interpretation was also of more no sales, no specific pattern of buying activity, yet really good crowds in attendance.

The resulting analytical efforts and actual value adjustments ended up with the lowest percentage level of increasing adjustments at only 11%, since the 9% increases for the week ending October 18, 2013. The big difference between the two periods was the number of actual vehicles adjusted at 2146 per day last October and only 1492 per day this past week, direct evidence showing lower bidding activity.

The average segment change was also larger last October; -$74 and -$64 for the cars and trucks respectively last October, as compared to -$57 and -$54 this past week. For the most recent reporting period, the change for the cars was the lowest decline week over week in the past eight weeks, where the trucks change was the largest level over the past six weeks. Remember the comment about no pattern in the market and auction activity? Maybe not this past week but overall, year over year, the declining change level for the cars and the trucks has been greater this year.

With gas prices still very stable, a 1/2 cent increase for gas yet still $.15 lower than a year ago, I was a little surprised that the more stable car segments were the Entry Level Cars at +$1, and the Entry Mid-size Cars and Compact Cars both down by -$32, are the lowest segment declines within the cars.

There is only one pretty consistent pattern within the market change over the past few weeks and that is for the Full-size Vans where the passenger versions continue to bring the money with a $23 increase in average price week over week, and positive week over week changes for four of the past five weeks.

This is a great industry to be a part of where whenever there is a need or worthwhile cause, the industry as individuals and as a whole will step forward. One of our industry partners just challenged us to support the ALS division of the Muscular Dystrophy Association with the ICE Bucket Challenge. In support of this tremendous need to find a cure and support those afflicted and their families, we have accepted this challenge. The results will be posted soon, so stay tuned.

Thanks for your interest in the Black Book used market insight. Have a great week on the auction lanes!