Tag Archive | "Black Book"

Black Book’s Index Records Largest Single-Month Increase Since 2012


LAWRENCEVILLE, Ga. — The replacement of the up to 500,000 vehicles damaged by Hurricane Harvey began last month, fueling the largest single-month increase in Black Book’s Used Vehicle Retention Index since March 2012.

The index increased from 112.6 to 113.9, with compact cars (up 2.8%), compact crossover SUVs (up 2.4%), full-size cars (up 2.5%), and mid-size cars (+2.3%) each realizing significant month-over-month increases within the index.

“We certainly anticipated a near-term increase in the index in last month’s report, and with the storm replacement activity kicking in, we believe this activity will continue in the next month but not much longer,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “We saw a nice bump in several car segments, and we also anticipate several truck segments to see increases as well, especially with the demand for service and construction vehicles. It was interesting that mainstream car segments and compact SUVs experienced the largest increase in immediate replacement demand.”

The Index dates back to January 2005, when Black Book published a benchmark index value of 100 for the market. During 2008, the index dropped by 14.1%. In 2016, it fell another 6.4%. During 2011, the index rose strongly from 113.3 to 123 by the end of the year, as the economy picked up steam and used-vehicle values rose higher. It continued to remain relatively stable, rising slightly until May of 2014. That’s when it peaked at 128.1.

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Vehicle Depreciation Accelerates Heading Into Q4


LAWRENCEVILLE, Ga. — A steep decline in Crossover/SUV wholesale values, which have been strong all year, may point to more than seasonality as the reason for higher depreciation recorded for two-year-old vehicles last week, Black Book said this week.

This week’s Black Book Market Insights report show a greater weakening in pricing on vehicles in both car and truck segments heading into the fourth quarter, which is typical this time of year. What caught the firm’s eye, however, was that most crossover/SUV segments showed the highest value declines last week, with the full-size crossover/SUV segment leading the way with a 1.12% drop.

“Typical seasonality trend of the higher depreciation in the fourth quarter continue,” noted Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “Crossover/SUV values, which have been strong all year, are also starting to see steeper declines.”

Volume weighted, overall car segment values decreased 0.80%, which was higher than the depreciation rate of 0.69% seen in the previous four weeks. Leading the way were the mid-size and sporty car segments, which decline by 1.20% and 0.88%, respectively, last week.

The overall truck segment values, including pickup, SUVs, and vans, decreased by 0.76%, which was higher than the depreciation rate of 0.57% seen in the previous four weeks.

Past seasonality trends, according to Black Book, show that vehicle depreciation is typically highest in the fourth quarter. This year is looking to be no different, except that retention values are lower this year than what was recorded the previous four years.

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Car Depreciation Accelerates in August, Black Book Reports


LAWRENCEVILLE, Ga. — The average price of a used vehicle for model years 2011-2015 depreciated 2.4% during August, noticeably more than July’s 1.5% decline, according to Black Book.

The decline is also notably more than what was recorded the last three years during the month of August — even higher than August 2014’s 1.9% depreciation rate. Cars overall recorded the highest depreciation, with prices falling 3.1% compared to 1.9% in July. Truck segment showed depreciation of 1.8% for the month, with all vehicles currently averaging a 12-month depreciation change of 16.2%.

Depreciation for near-luxury cars, including the Acura ILX, Audi A4, BMW 3-Series, Cadillac ATS, and Lexus IS250, was the highest at 3.7%. Vehicles in this segment finished the month with an average price of $18,112, a 19.5% decline from year-ago levels ($22,501).

Full-size pickups, including the Chevy Silverado, Dodge Ram, Ford F150, and GMC Sierra, recorded the highest retention, with prices depreciating only 0.6%. Vehicles in this segment finished the month with an average price of $24,372, a 10.2% decline from a year ago ($27,152).

Four other vehicle segments saw depreciation of 3% or greater in August. Those segments were the sub-compact car (3.5%); sporty cars (3.4%); luxury cars (3.3%); and compact cars (3.3%).

The top six segments with the weakest retention during August were all cars. And while prestige luxury cars recorded the strongest retention among all car segments, its 2.2% depreciation rate made it just the eighth best-performing segment overall for the month. In fact, just two car segments ranked in the Top 12 among retention for the month (premium sporty car depreciated 2.7%).

“As fall approaches, depreciation trends continue to accelerate as we head toward the last few months of the year,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black book.  “We can expect to see lower retention in cars across all segments as the year continues, and we’ll continue to monitor truck levels to see if they also see weaker retention overall.”

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Vehicle Depreciation Accelerates in Q1, Black Book Reports


LAWRENCEVILLE, Ga. — Year-over-year depreciation accelerated during the first quarter of 2016, demonstrating that the market has reached the peak of the spring season, according to Black Book. During the quarter, vehicles depreciated at a rate of 3.6%, compared to 0.6% during the year-before period.

Additionally, Black Book data found that the average price of used vehicles for model years 2010-2014 declined 0.9% during March. Full-size vans led all vehicle segments with the highest depreciation rate of 2.2%. Trucks followed with a depreciation rate of 1.3%, and cars experienced the least amount of depreciation at 0.4%.

“While this is the time of year when values see noticeable strength, it’s very apparent that this year’s spring market isn’t as strong as it has been the last few years,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “More than ever, it’s important for dealers and remarketers to pay close attention to the data to spot the trends that can shape their inventory strategies for the remainder of the year.”

Not all vehicle segments experienced depreciation in March, however. Sub-compact crossover values remained flat during March, ending the month with an average price of $12,218. Full-size cars — the best performing segment during March — experienced a 0.7% gain in value during the month, ending the period with an average price of $12,768. Sporty and compact cars both saw increases of 0.6% during March, bringing those segments’ average prices to $13,818 and $8,202, respectively.

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ProMax to Distribute Black Book’s New Bullseye Prospecting Solution


LAWRENCEVILLE, Ga. — Black Book has announced a distribution agreement with ProMax to help expand the footprint of its new Bullseye Prospecting turnkey platform for dealer marketing campaigns. As part of the agreement, ProMax will market Bullseye Prospecting to its network of auto dealers throughout the United States.

“ProMax had the opportunity to conduct an early trial of Bullseye Prospecting and the initial testing produced great results for those dealers involved,” said Shane Born, COO of Dealer Marketing Services Inc. “Bullseye Prospecting will change the way dealers plan and executive customer campaigns, with an eye toward efficiency and cost reduction.”

In early tests, according to Black Book, Bullseye Prospecting helped dealers consolidate their marketing efforts while also lowering their cost per car sold overall. Powered by data from Black Book, the tool is designed to reduce and consolidate the many different touch points involved in the development and execution of a customer campaign.

Bullseye Prospecting leverages economies of scale for data coming from DMS, consumer, incentives, vehicle equity and valuation sources as well as partnerships with photo and printer vendors. By doing so, it circumvents working with several different vendors that add to the overall cost of production.

“In today’s automotive industry, dealers are looking for every opportunity to grow margin for their bottom line, especially as profits tighten on vehicle sales,” said Jared Kalfus, senior vice president of sales at Black Book. “Bullseye Prospecting helps drive costs out of their marketing campaigns, and ProMax will help distribute this important resource throughout the dealer community.”

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Black Book: Mid-Size Cars See No Depreciation in February


LAWRENCEVILLE, Ga. — According to Black Book data, the average price of a used vehicle for model years 2010-2014 declined 1.1% during February, with cars declining 1.1% and trucks falling 1.2%.

Full-size pickups led all vehicle segments with the highest depreciation for the month at 2.7%. Vehicles in this segment include Chevrolet Silverado, Dodge Ram 1500, Ford F150, the Nissan Titan and the Toyota Tundra. Vehicles in this segment entered March with an average segment price of $22,502, a 6.3% drop from a year ago ($24,013).

Nineteen different car segments saw less than 2% depreciation last month. The three segments with the lowest depreciation were full-Size cars (0.3%), compact crossover/CUV (0.1%) and mid-size cars (0.0%). Vehicles in the full-size car segment, including the Hyundai Azera, Mercury Grand Marquis, Toyota Avalon, Nissan Maxima and the Chevrolet Impala, exited the month with an average price of $12,674, a 16.3% decrease from a year ago. Vehicles in the Compact Crossover/CUV segment, including the Ford Escape, Honda CR-V, Jeep Cherokee and the Nissan Rouge, ended the month with an average segment price of $12,978, a 14.6% decrease from last year.

Mid-size cars led all segments with zero depreciation. Vehicles in this segment, including the Kia Optima, Ford Taurus, Honda Accord, Toyota Camry and the Volkswagen Passat, finished February with an average segment price of $9,595, a 18.8% decrease from a year ago ($11,813).

“Clearly the car segments have begun to pick up momentum as we inch closer to spring, especially mid-size cars and full-size cars,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “As we reach the pinnacle of spring, it will be interesting to see if cars perform similarly to last year or if they experience less retention during the tax season.”

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