April 3, 2017 “Market strength continued last week with most car segments showing an appreciation in values, led by sub-compact and sporty cars.” Anil Goyal, Senior Vice President of Automotive Valuation and Analytics Model Years: 2008-2014, Volume Weighted Wholesale Average Values, Weekly Change from 3/24/17 to 3/31/17 Broad Market Strength Seen Last Week Volume-weighted, overall car values appreciated slightly by 0.09% last week, as opposed to the average weekly depreciation rate of 0.19% seen in the previous four weeks. In car segments, Sporty Car and Sub-Compact Car segments performed the best, increasing by 0.50% and 0.36%, respectively. Volume-weighted, overall truck values were nearly flat last week, as opposed to the average weekly depreciation rate of 0.31% seen in the previous four weeks. In truck segments, Compact Vans improved the most in value by 0.59% whereas Compact Luxury Crossover/SUVs dropped the most in value by 0.20%. +$19 +0.36% -$3 -0.04% +$4 +0.06% +$15 +0.16% -$11 -0.09% +$14 +0.09% +$20 +0.07% +$71 +0.50% -$95 -0.29% +$8 CARS +0.09% -0.4% -0.2% 0% +0.2% +0.4% +0.6% WEEKLY CHANGE $0 0% +$7 +0.07% -$9 -0.07% -$15 -0.09% +$23 +0.14% -$34 -0.20% -$12 -0.07% -$33 -0.13% -$4 -0.03% +$48 +0.59% -$18 -0.13% +$6 +0.05% +$1 +0.01% -$3 TRUCKS -0.02% -0.4% -0.2% 0% +0.2% +0.4% +0.6% +0.8% WEEKLY CHANGE
Transcript
April 3, 2017
“Market strength continued last week with most car segments showing an appreciation in values, led by sub-compact and sporty cars.”
Anil Goyal, Senior Vice President of Automotive Valuation and Analytics
Model Years: 2008-2014, Volume Weighted Wholesale Average Values, Weekly Change from 3/24/17 to 3/31/17
Broad Market Strength Seen Last Week
Volume-weighted, overall car values appreciated slightly by 0.09% last week, as opposed to the
average weekly depreciation rate of 0.19% seen in the previous four weeks.
In car segments, Sporty Car and Sub-Compact Car segments performed the best, increasing by 0.50%
and 0.36%, respectively.
Volume-weighted, overall truck values were nearly flat last week, as opposed to the average weekly
depreciation rate of 0.31% seen in the previous four weeks.
In truck segments, Compact Vans improved the most in value by 0.59% whereas Compact Luxury
Crossover/SUVs dropped the most in value by 0.20%.
+$19+0.36%
-$3-0.04%
+$4+0.06%
+$15+0.16%
-$11-0.09%
+$14+0.09%
+$20+0.07%
+$71+0.50%
-$95-0.29%
+$8CARS
+0.09%
-0.4%
-0.2%
0%
+0.2%
+0.4%
+0.6%
WEE
KLY
CH
AN
GE
$00%
+$7+0.07%
-$9-0.07%
-$15-0.09%
+$23+0.14%
-$34-0.20%
-$12-0.07%
-$33-0.13%
-$4-0.03%
+$48+0.59%
-$18-0.13%
+$6+0.05%
+$1+0.01% -$3
TRUCKS-0.02%
-0.4%
-0.2%
0%
+0.2%
+0.4%
+0.6%
+0.8%
WEE
KLY
CH
AN
GE
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April 3, 2017
Sentiment from the Auction Lanes
Our editors and personnel attend about 60 auctions every week across the country to provide key insights:
“A rep from a large dealer group stated the market was “on fire” today. SUVs and trucks were the strongest.” Bob in MA
“Smaller crowd in the lanes but online bidding was brisk. Very few no-sales and prices were consistently strong.” Bret from IL
“OEM and bank owned vehicles sold at high percentages but were almost all nice vehicles with acceptable miles considering the model years.” Mark from FL
“Auction owner reported on a sale where the sold percentage was 73%. This was an event sale but that percentage certainly supports a strong market.” Bob in WA
“A lot of the bidding at this high-line sale was online. Increased interest in cars over trucks and SUVs had a lot to do with price.” Laura from OH
Three-Year Retention on Near Luxury Cars
Near luxury cars have been declining in retained value. 2013 Model Year fetched 49% in March 2016.
Comparatively, a three-year old near luxury car retained less than 47% in March of 2017 for a 2014
Model Year.
Vehicle Highlight 2017 Chevy Colorado ZR2 trim is being reintroduced this year. Its aggressive stance and off road capability will really test the loyalty of the Toyota Tacoma enthusiast. The Colorado is offered in five trim levels including: Base, W/T, LT, Z71 and ZR2. You can choose from a 2.5L 4 cylinder, 3.6L V6 or a 2.8L Duramax Turbo Diesel. The Colorado’s main competitors will be the Toyota Tacoma, Honda Ridgeline, GMC Canyon and Nissan Frontier.
This week’s report includes our Monthly Edition Supplement on Specialty Markets.
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April 3, 2017
Amelia Island Auctions Top $120,000,000 “The new year started off on a high note with the collectible car auctions in Florida
and Arizona pulling in big numbers, and the five auctions held in conjunction with
the Amelia Island Concours d’Elegance kept the momentum going with
$121,000,000 in sales. Although sales totals were down about $20,000,000 from last year, that’s
primarily a result of a lack of a few more eight-figure cars, and not necessarily a lack of interest.”
Eric Lawrence, Director of Specialty Markets
Bonhams had a successful one-day sale, bringing in a total of $10,200,000 with a sell through rate of 87%. Only one car, an alloy bodied Ferrari Europa GT, sold for in excess of $1,000,000, but there were several impressive sales in the $250,000 - $500,000 range, including a beautiful 1951 Allard J2 roadster for $275,000.
Although they failed to sell their headliner, a 1957 Jaguar XKSS roadster, Gooding & Company nevertheless had a very good outing, realizing $30,800,000 on the sale of 69 of 88 lots, with a sell through rate of 78% and nine million dollar cars. The Jag fell just short of its reserve, and I was shocked that a deal could not be worked out.
RM Auctions staged a two-day event, and came away with $71,800,000 in sales, a 90% sell through rate, and nineteen million dollar cars. Day one was devoted to the Orin Smith collection, while day two was a traditional mix of consigners. The Orin Smith collection was no-reserve, with all lots selling, and topped $31,000,000.
Motostalgia and Hollywood Wheels rounded out the weekend with $4,500,000 and $4,200,000 respectively.
Notable Recent Auction Sales Include:
1953 Fiat 8V Supersonic Coupe $1,375.000 (RM Sotheby’s)
1937 Bugatti Type 57S Cabriolet $7,700,000 (RM Sotheby’s)
1995 Ferrari F50 Coupe $2,640,000 (RM Sotheby’s)
1963 Aston Martin DB5 SWB Volante $1,700,000 (RM Sotheby’s)
“With the exception of a few pockets of the country where the winter refuses to
relax its grip, we have started to see nicer weather and an active Spring market.
Travel trailer values hit an all-time high last month, while motorhomes, perhaps still feeling the effects
of colder weather, declined a touch. As retail buyers start to visit lots and showrooms, RV dealers will
continue to attend the wholesale auctions to build up their inventory and replenish any units they sell.” Eric Lawrence, Director of Specialty Markets
For Motor Homes (including Class A, B, and C)
Average selling price was $38,845, down $3,852 (9.1%) from previous month
One year ago, the average selling price was $35,124
Auction volume was up 13% from the previous month
For Towables (including Travel Trailers and Fifth Wheels)
Average selling price was $13,235, up $935 (7.6%) from previous month
One year ago, the average selling price was $11,948
Auction volume was down 8% from previous month
30000
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Motor Home Value Trends
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Travel Trailer and Fifth Wheel Value Trends
SPECIALTY MARKETS:
RECREATIONAL VEHICLES
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April 3, 2017
Powersports Market Running Full Throttle “The Powersports market is roaring ahead ‘Full Throttle’ this month with some of the largest increases in value we have seen in quite some time. On-road units are up across the board, with Scooters and Dual Sports leading the way.”
Scott Yarbrough, Motorcycle & Powersports Editor
The arrival of spring and warmer weather is reflected in higher average values for all of the on-road segments, most by healthy amounts. The Street Bike segment is the weakest performer, up only about one percent, while the Scooters and Dual Sports are up by four to five percent with the Cruisers not far behind.
In a reversal from last month, the domestic V-Twins have outperformed their metric counterparts. They are up about a full percentage point more on average.
As expected, the Snowmobile segment is dropping in value fast, down an additional 3.3 percent, while Jet Boats and Personal Watercraft are up a solid two percent.
ATVs are down about one percent, normal for this time of year, and Utility Vehicles are continuing their recent trend of coming back down to Earth a bit after several years of higher than average values, showing virtually no change in value this month.
-0.8%
3.2%
2.3%
2.7%
3.7%
5.5%
-3.3%
0.9%
-0.2%
2.5%
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
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3.0%
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Motorcycle & Powersports Percent Changes March to April 2017
SPECIALTY MARKETS:
POWERSPORTS
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April 3, 2017
Values Held Up in March, but Started Dipping in the Last Few Days in the Month
“The Spring Season brings us warmer weather, a fresh start for the new
year and used truck buyers refreshing their equipment if they are an end
user, and restocking their inventory if they are a dealer. “
Charles Cathey, Editor – Heavy Duty Truck
Data
Used truck wholesale values held up for the most of March, but there
were signs right at the end of the month that depreciation would pick back up again. Equipment has been refreshed
and inventories have been restocked and there are plenty of trucks in the pipeline for the near future with Class 8
Over the Road and Regional product with Construction/Vocational holding up at the end of March.
DATE
Construction/Vocational Over the Road Trucks & Tractors Regional Tractors MODEL
YEARS Value $ Change % Change Value $ Change % Change Value $ Change % Change
Fuel prices have been fairly stable for the past couple of weeks. We are currently paying an average of $2.54 per gallon for diesel. This is a $0.02 drop from last month yet a $0.42 increase from this time last year. Let’s hope these trends continue.
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