Though pickups have been strong when it comes to price retention most of the spring, another segment joined them this past week: the premium sporty cars.
According to the latest Black Book Market Insights report, premium sporty cars began picking up in price this past week at auction, a trend which is expected during the summer months.
The premium sporty cars saw prices rise by 0.20 percent or $76. The was the only increase among the car segments this past week. The average overall price movement for cars came in at a decline of 0.54 percent or $67.
With the tax season surge over, some of the smaller vehicle segments that normally perform well over the tax-time months, are now seeing prices correct themselves.
The entry-level cars led all car segments for depreciation this past week, with prices dropping by 1.3 percent, or $93.
Black Book pointed out entry mid-size (-0.87 percent or -$84) and full-size cars (-0.76 percent or -$81) have also started to show larger depreciation as we head into summer.
Black Book analysts also cited a trend that mid- and full-size car sales at auction are slowing, due in part to the fact many dealers are holding off on buying under the expectation prices for these segments will continue dropping over the summer months.
One buyer comment overheard by Black Book analysts in the lanes in Florida explained: “Not much play on mid-size and full-size cars today as buyers say that there are plenty to pick from.”
That said, KBB’s May Blue Book Market Report explained the downturn in used-car values “comes as no surprise” for this time of year.
“Typically, used-car values rise throughout the first part of the year and begin to trend downwards throughout the remainder of the year,” KBB analysts explained.
Moving on to highlight the larger segments price movement last week, trucks finished the week with an overall price drop of $19, or 0.12 percent last week, according to Black Book data. That said, all pickup segments showed an increase in price.
“Mid-size and full-size cars continued to decline in value with further softness expected during summer months, while pickup truck prices held up high in most markets,” said Anil Goyal, Black Book’s vice president of automotive valuation and bnalytics.
Full-size pickups saw the biggest dollar spike, with prices rising by 0.20 percent or $38, followed by the mid-size pickups with an increase of 0.25 percent or $30. Compact pickups also saw a slight increase, with rates rising by 0.13 percent or $19.
Comments in the lanes reflected truck strength, as one buyer from Boston said last week, “Trucks are still the hottest commodity around.”
And KBB’s report showed this trend proved true for most of May.
According to KBB data, wholesale prices fell by an average of 1 percent last month, after rising by 0.6 percent in April, but trucks once again bucked trends.
The full-size pickup segment performed well in May, led by the Chevrolet Silverado, Ford F-150, Toyota Tundra and GMC Sierra, all gaining just more than 2 percent this month, according to KBB data