Welcome to this week’s edition of Beggs on the Used Car Market, with insight and data from Ricky Beggs and Black Book. What a week it was as Black Book was on the lanes getting the most current market insight and also attending the annual National Auto Auction Association convention, this year in historic Boston. A huge thank you goes out to all the auctions and remarketers that support Black Book as we report the used market on a daily basis. At the convention Black Book was a sponsor of the initial Pedal Car Auction, created to help raise money for the NAAA Warren Young Sr Scholastic Foundation, Inc. The auction raised over ten times its stated goal of $50,000. Yes, over $556,000 was raised through the auctioning of eleven, one-of-a-kind pedal cars, with electricity in the air throughout the auction. The numbers at Barrett Jackson can’t match the $102,000 one of these cars brought, as these don’t even have an engine! Auctions are tremendous supporters within their individual communities and also supporting the educational efforts of the association.

Recognition was also given to Dealers Auto Auction of Huntsville and owner David Andrews as the NIADA Auction of the Year. The list of things this auction has done for their community is long and impressive.

During the convention several key industry personnel took the time to sit down with us and share their thoughts on a few topics regarding the market. We are including one of those in this week’s video market update blog with others to be shared with you in the coming weeks. Today let’s hear what Paul Seger, GE Fleet Services, Vice President, Asset Remarketing sees in the auction industry.

The market was very active this past week with some expected movement, while also being a little surprised at other changes, or should I say lower levels of change. As expected, gas prices continue their decrease in the price at the pump, as we are now at thirteen consecutive weeks of no increases. Now at $3.35 per gallon, as compared to $3.50 one year ago, we are at the lowest average national price since the week of February 10, 2014.

Also, as was expected, is the level of the change within the car segments. The average segment change was at -$84, the largest decline since the week of August 1st. This is in line with changes of the past month. Not surprisingly the higher end more luxury focused segments are moving the greatest dollar amount with the Premium Sporty Cars, the Prestige Luxury Cars and the Near Luxury Cars all declining by over -$100 and the Luxury Level Cars just less at -$95. Interestingly, this amount almost matched the segment change of one year ago where the change was -$73 overall, and also having three of the just-mentioned segments moving down by -$100 or more. 

The market data and our conversations this past week also indicate the current and one year old models being the toughest sell. This is being driven by the 2015 models becoming available, and with the need to create a difference from those values.

Of a more pleasant surprising nature, the truck market adjusted at only -$21 for the week, the lowest weekly declining amount since the week of July 2, 2014, where there was a change of -$20. I was not surprised at the movement within the Full-size Vans where the cargo and passenger versions increased by $24 and $25 respectively. The primarily no longer made old style vans are getting tremendous attention right now. But with three other segments increasing for the week, this is a variance from the normal seasonal movement.

We will be back on the auction lanes this coming week with Daily market value updates to the data and mobile applications, to see if the market segments continue along the same path or take on another adjustment level.

On October 1st we will be posting the Beggs on the Specialty Markets video blog. So if you are interested in the collectible and exotic car markets, RVs, motorcycles and other powersports models, along with the Medium and Heavy Duty Trucks, please tune in for the latest market insight on the first of the month.