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Wednesday, 14 October 2020 23:34

Why Dealers Are Now ‘Exercising Caution’

Written by Auto Remarketing Staff

Index

Black Book also pointed out that new-model inventory levels of full-size crossovers and SUVs continue to be low too, “so depreciations are remaining fairly stable.” Those units edged down by just 0.05% this past week. 

 

On the car side, value depreciation accelerated compared to the previous week.

 

According to Black Book’s volume-weighted data, analysts said overall car segment values decreased 0.92% the last week, up from the previous week’s drop of 0.66%.

 

Black Book noticed that mainstream car segments---subcompact, compact, midsize and full-size---all suffered declines of more than 1% with those sub-compacts leading the way at 1.40%.

 

The report mentioned that premium sporty cars continue to generate interest as values for those units ticked just 0.02% lower, counter to the overall car segments trends.

 

“Sales results at the auctions improved last week for many remarketers as many floors have now been adjusted to reflect the softening in wholesale values,” analysts said.

 

“This was not the case for all sellers, with many of the dealer lanes seeing a lot of ‘ifs’ and high no sale rates on a few luxury manufacturer lanes with remarketers holding firm to floors,” they added.

 

One other trend Black Book mentioned in the latest report directly correlated with how dealers are behaving in the lanes.

 

“A couple of weeks ago, we noticed the success the independents were finally having in being able to successfully bid against the larger buyers. However, this past week we did see that change a bit as the larger buyers got a little more aggressive in their bidding,” analysts said.

“This was especially true on the lanes where the remarketer was letting go of most any of the inventory that received a bid,” analysts went on to say.

 

We thank Auto Remarketing for reprint permission.


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