Throughout the year, Galves makes constant attempts to keep our subscribers up-to-date on what is happening within the wholesale market. Our American, Foreign and Truck books contain brief statements on Page 1 that appear under the heading "Market Conditions" and we publish an expanded "Market Conditions" page here on galves.com....
Last updated Monday, July 14, 2014
It's summer. If you couldn't tell from the increasing warmth of the weather you might have a clue from the cooling down of the market. So far it seems to be a pretty typical summer market: slow but steady declines affecting all segments.
Late-model, Luxury Units Declining
Hardest hit are very late model vehicles, especially those experiencing strong manufacturer incentives on new models. There is a lot of that as many new models have recently been introduced or are soon to be. There is very little retail business and what there is is mostly focused on new vehicles. Not surprising when payment buyers can often find new vehicles as affordable or more so than late model used vehicles.
Also experiencing greater than normal depreciation are European and Asian luxury vehicles, cars more than trucks. Most affected are the high volume models. Mercedes E350 sedans, for example, are declining faster than E350 coupes which are in much shorter supply. That will continue and in all probability accelerate as we move through the fall months. Sport coupes and convertibles, as would be expected, are heavily impacted as well.
Slower Declines on Mainstream Vehicles
Mainstream cars- Accords, Camrys, Fusions, and their ilk -are beginning to decline, but slowly. Again, the ones that are returning to market in big numbers are declining more rapidly than the others. Pick-up trucks are experiencing the same conditions. The rarer models are doing better than their high volume brethren. Another lesson in supply/demand theory.
Even price range vehicles are beginning to erode, though more slowly than most other segments. The exceptional vehicles still do well, but the standards for what qualifies as an exceptional vehicle have become tougher.
So far it's a pretty normal summer market and we don't expect that to change any time soon.