Welcome to this week’s edition of Beggs on the Used Car Market, with insights from Ricky Beggs and Black Book. We trust each of you had a busy and profitable week. Our team of editors, analysts and survey personnel were on the lanes and online gathering market data and studying loads of actual transactions, while reporting the current market.

By the end of the week the summaries of data showed us a continuing soft market with still only about 17% of the adjustments being increases. Two things caught my attention this past week. One was that both the average segment change for the cars and the trucks had smaller levels of declines than the previous week and number two, even though the market softness continues, the number of vehicles needing adjustment was the lowest in the past five weeks, at only 1430 on average per day throughout the week.

The cars average segment change of -$60, the lowest in the past five weeks was just $3 more than the same week one year ago. The lowest dollar changing segment this past week was the Entry Mid-size Cars at -$33, which was also the best week over week adjustment level improvement from the -$98 the prior week. For the most consistent week to week changes the three more luxury type segments have different average changes of only $1 to $3 within the Near Luxury, Luxury Level and the Prestige Luxury Cars.

The trucks average segment change of -$34 is the lowest average segment change over the past six weeks. If you are a seller, the segment you might want to have some models to put into the wholesale market would have to be the Full-size Vans, both passenger and cargo versions, as there have been positive change levels the past two weeks. One year ago both Full-size Van configurations were also positive level changes. 

On the opposite end of the adjustment level, the truck based large utilities, the Full-size SUVs at -$117 and the Luxury SUVs at -$105, are getting the largest changes for the week. A year ago the Luxury SUVs were a similar -$103 adjustment. The Compact Pickups and the Compact SUVs continue to be the most stable segments over the past 3 to 4 weeks. These two better performing segments also happen to be segments made up of fewer choices or models and volumes within the vehicles making up the segments.

Both gas and diesel prices at the pump continue to decline, both fuel types by another penny week over week to $3.50 for gas and $3.84 for diesel. And both now 6 cents less than year ago levels and also six consecutive weeks of dropping pump prices.

As we look at the pattern of used vehicle prices we anticipate the softness to continue. The one and two year old models should be getting the largest level of adjustments as well as the most limited interest from the buyers. As we move into the fall of the year, expect a more focused effort from the manufacturers to keep market share by bumping up various incentive offerings. 

And speaking of new market vehicles, we had the opportunity to get a hands on feel and insight into another new model this past week. Acura has decided to take two different models, the TSX and the TL, and blend the size and styling into the new TLX model. With interior size of the outgoing TL and blending it with a smaller exterior package, they have created a still comfortable, yet, sportier vehicle. Throw into two engines – a 4 cylinder and a 6 cylinder along with new transmissions and Acura has an offering that expands the potential buyer base.