by Jon LeSage, editor, Used Car Market Reports
Here’s some remarketing trends worth paying attention to from the latest Used Car Market Reports….
Galves Auto Price List saw some abrupt changes in the marketplace in the past few weeks. Editor Dan Galves says it was the most abrupt shift he can recall ever seeing.
Galves Auto Price List works closely with a large complex of wholesale dealers in the US for weekly price reports based on trade-in values.
It’s appearing to impact all segments, though 2011 and later model vehicles are getting hit hard. It looks to be disproportionately affected by the current climate of aggressive leasing programs and manufacturer incentives.
Demand by dealers has dropped mostly for late model European and Asian luxury vehicles, with cars standing out the most. The Infiniti G37, M37, M56 and M45 models have depreciated rapidly in the past month. Audi and BMW models haven’t been too far behind – including, surprisingly, the popular BMW 3 Series. Convertibles and sport couples coupes also have been hit hard.
On the retail used car sales side, Art Spinella and the CNW Research team saw a strong month in September with volume up nearly 4% over a year ago and transaction prices up nearly 11%.
It was a tougher month for independent dealers in September – volume was down nearly 7% from a year ago and transaction prices were up just 0.7%. It was a much better month for franchised dealers, who were assisted by certified pre-owned and younger models that were on the lots.
Private party (casual) sales are continuing to see a rise in popularity – sales were up nearly 19% over a year ago, though transaction prices were up just 1.22%.
Ricky Beggs and the Black Book team noticed an anomaly out in the market – while gasoline prices were down for the third straight week, the typical drop in pricing for fuel efficient vehicles weren’t hurt by it.
Entry Mid-size Cars dropped -$29, Upper Mid-size Car was at -$30, and these were followed closely by Entry Level Cars at -$31 and Compact Cars at -$35. Full-size cars saw a steeper decline at -$50.
