Last updated Friday, June 4, 2004
There seems to have been a slight downward trend in the market over the past month.
Vehicles are still scarce and the market continues to be generally good, but selling has
become slightly more difficult for ordinary - in terms of color, equipment, mileage,
model – vehicles.
Sport coupes and convertibles continue to soften slowly but steadily. Corvettes and Mustangs
are leading the way as that market slowly erodes. Those scarcer examples - BMW 3s and Zs, MB
SLs CLKs and SLKs, Porsche Boxters and 911s, Honda S2000s, Toyota MR2s, Lexus SC430s, etc. –
though experiencing a lesser degree of downward pressure can be expected to follow suit as
the season for toys dwindles.
Rising Gasoline Prices....
The high gasoline prices are certainly affecting the values of those vehicles that are "guzzlers."
In particular, the large SUV segment is experiencing a slide. Excursions, Explorers, Tahoes,
Suburbans, and their ilk are in greater supply than usual and have less demand. It is one of
those times when wholesale buyers know the gas situation is having some affect on the market
but are unsure to what degree and are therefore reluctant to buy unless they feel the truck
in question is what they consider cheap. Beware in particular of Hummers. They are around
and they are thirsty.
Diesels, because of their excellent mileage and the relative inexpensiveness of diesel fuel,
are holding their position in the market and in some cases (notably VW products) are experiencing
a significant increase in value. The same is true for those hybrids that are available,
especially the Toyota Prius.
In general, then, the market is still relatively good, but it is June and unless there is
an unexpected increase in retail activity we expect the market to erode at an increasing
rate as summer moves on.