Heavy storms in Jan¬≠u¬≠ary and Feb¬≠ru¬≠ary had a big impact on pent-up demand and used car prices blos¬≠som¬≠ing in March, as the NADA Used Car Guide and ADESA Ana¬≠lyt¬≠i¬≠cal Ser¬≠vices‚Äô reports demon¬≠strate this week. Sea¬≠son¬≠al pat¬≠terns always car¬≠ry their weight, and Black Book is expect¬≠ing to see some notable per¬≠for¬≠mance trends, accord¬≠ing to Ricky Beg¬≠gs, Edi¬≠to¬≠r¬≠i¬≠al Direc¬≠tor at Black Book. That has a lot to do with the his¬≠toric tax-buy¬≠ing sea¬≠son for used vehi¬≠cles as lots of shop¬≠pers use tax rebates on used car pur¬≠chas¬≠es.
When you review the chart cre¬≠at¬≠ed by Black Book, you‚Äôll see how five pop¬≠u¬≠lar car seg¬≠ments are expect¬≠ed to per¬≠form in May-July 2013 reten¬≠tion. They‚Äôve been show¬≠ing strong reten¬≠tion late¬≠ly (four out of five of them had price increas¬≠es in March), but should have above-aver¬≠age depre¬≠ci¬≠a¬≠tion in the short-term future. Mak¬≠ing this list were Entry Mid-Size Car, Full-Size Car, Full-Size Crossover, Upper Mid-Size Car, and Com¬≠pact Car.
Cars have tak¬≠en the biggest hit ‚Äď rep¬≠re¬≠sent¬≠ing four out of five of the top lead¬≠ing seg¬≠ments in depre¬≠ci¬≠a¬≠tion. Black Book has been care¬≠ful¬≠ly watch¬≠ing how gaso¬≠line prices have been affect¬≠ing cars ‚Äď while they‚Äôre high¬≠er than usu¬≠al late¬≠ly, the gas pump price increase is typ¬≠i¬≠cal for the sea¬≠son and is prob¬≠a¬≠bly not enough of an increase to strength¬≠en used car seg¬≠ment prices.
The biggest hit among these five pop¬≠u¬≠lar cat¬≠e¬≠gories should be tak¬≠en by Entry Mid-Size Cars, which have an expect¬≠ed loss of 5.9% in May-July 2013 reten¬≠tion. Its April 2014 mar¬≠ket val¬≠ue of $10,741 is expect¬≠ed to reduce down to $10,107 by July.