Gas Prices Impacting Certain Segments

Cars & Trucks
One of the most often mentioned topics to the Black Book editors during the week was related to the coming increasing supplies of used vehicles and ultimately an adjustment in value retention. Currently the level of adjustment in the market values is a result of the beginning of a few more choices in the market, but the primary reason for the -$78 average segment change in the cars this past week is related to the time of the year. This level of change is also slightly larger declines over the past couple of years. The past four weeks have averaged a -$74 change.

Within the cars the three segments with the greatest percentage change for the week were the Entry Level Cars at -1.52% and a -$95 change, the Compact Cars at -.61% and -$45 change and the Entry Mid-size Cars at -.55% and a -$44 change. These change levels we feel are somewhat a reaction to the drop in current gas prices at the pump as these three segments are the primary more fuel-efficient models. On the dollar level changes the higher line vehicles, the Premium Sporty Cars and the Prestige Luxury Cars had change levels at -$215 and -$123 respectively.

On the truck side the segments with the best retention, both dollar and percentage, were focused around the Full-size SUVs and the Full-size Crossovers at -.06% and -.11%, while the minivans were also at the -.11% level.

On the other end, a little bit of a surprise were the three segments with the greatest percentage change. All three pickup segments led by the Compact Pickups at -.73%, then the Mid-size Pickups at -.43% and followed by the Full-size Pickups at -.41% is a little larger declining level than the most recent previous trends for these segments, and is slightly contrary to the current gas price levels. We feel this is a temporary trend that should not continue this change level in the next few weeks.

Overall the market change has been very steady and consistent in the overall level of change as well as the number of vehicles requiring an adjustment. This past week there was an average of 1670 vehicles adjusted per day and the past three week average only slightly higher at 1730 per day.

One final note as we wrap up this weekly market report. The price of gas at the pump on a national average took one of the biggest weekly changes in quite some time with a weekly change of -$.07 to $3.19. This is $.26 less than one year ago and also $.06 less than the low point of the past year which was the week of 12/17/12 where the price was $3.25. This is a nice price point for the consumer. This price at the pump could decline even more, possibly even under $3.00, until the traditional reverse increases start back probably toward the middle to end of January 2014. We will have some fluctuations during the next year but not at the point of new high points or even to the average price throughout all of 2013.