Uneven floors aren’t good for a house as far as its construction or current state.
And uneven floors potentially are causing some issues for dealers at the auction, too, as mentioned in the latest COVID-19 Market Insights from Black Book.
Black Book reported the continued seasonal decline in values for both cars and trucks, while analysts dissected what remarketers are doing with their units, which in some cases are actually running down the lanes again.
“With the exception of select trims and models that have seen lower demand, remarketers have reported taking a break from dropping floor values,” Black Book said in the report.
“However, volume has been increasing so it is expected that floor adjustments will be required again before the end of the year,” analysts added.
That projection arrived after Black Book noticed a “significant” drop in sold volume in both September and October on a month-over month and year-over-year comparison. Analysts pointed out that many remarketers were not willing to adjust price floors during that timeframe.
Black Book also said rental companies pulled back on de-fleeting in case vehicles were needed in areas impacted by hurricanes. And analysts added that repossession volume still remains uneven because of pandemic-created impacts.
What about the most recent value movements? They’re continuing to move lower at a pace Black Book has seen for much of the past several weeks.
Beginning with volume-weighted car information, the update showed overall segment values decreased 0.84% over the past week; a bit more than the decline of 0.78% analysts saw a week earlier.
The mainstream subcompact, compact and midsize car segments continue to experience the largest depreciations each week, with their latest drops coming in at 1.07%, 1.30% and 1.19%, respectively, according to the report.
Also of note, Black Book mentioned sporty cars continue their traditional seasonal declines with a slight increase in depreciation this past week, sliding another 0.77% after softening 0.72% during the prior week.
Moving over to the truck segments, Black Book volume-weighted information showed values for the overall segment (including pickups, SUVs and vans) decreased 0.52% last week, nearly mirroring the prior week’s drop-off of 0.50%.
Analysts discussed minivans in more details after values for those family haulers dropped 1.35% to lead all truck segments.
“Minivans have been on a wild ride throughout the pandemic,” Black Book said. “Most segments fell and have experienced a strong rebound before stabilizing, but Minivans is one segment that never rebounded to a level above this same time last year.
“With these low retail prices, it is no surprise that we’ve seen week-over-week declines increasing,” analysts continued.
Black Book also touched on one of the most popular segments — full-size pickup trucks — as depreciation for those units came in at 0.33% last week, similar to the prior week’s dip of 0.31%.
Source : AutoFinanceNews
