Blue Book Market Report — August 2015

Fuel Prices Up Slight­ly in August 2015

  • Fuel prices fin­ished the month of August at an aver­age of $2.61 per gal­lon, just 6 cents high­er than the $2.55 aver­age in July 2015.

“Despite the 63-cent increase in the price per gal­lon of fuel since Jan­u­ary, fuel prices have been rel­a­tive­ly sta­ble over the sum­mer months,” said Sean Foy­il, ana­lyst for Kel­ley Blue Book. “The aver­age price for fuel between June and August is $2.64 per gal­lon, just 3 cents high­er than today’s aver­age. his comes as no sur­prise, as sum­mer months tend to bring less over­all fluc­tu­a­tion in the aver­age price for fuel. Addi­tion­al­ly, based on his­tor­i­cal trends and cur­we expect fuel prices to con­tin­ue to trend low­er mov­ing into 2016 as we close out the year.”

Auc­tion Vol­umes Con­tin­ued to Rise in July 2015

  • Vol­ume in the auc­tion lanes lift­ed in July, increas­ing more than 23,000 units, or 5 per­cent above June fig­ures.
  • For the sec­ond quar­ter, auc­tion vol­umes peaked in April, fol­lowed by a notable 15 per­cent drop in May. Despite the decrease, auc­tion vol­umes have been steadi­ly increas­ing since June, up more than 58,000 units in total.
  • In August, Kel­ley Blue Book field ana­lysts report­ed see­ing approx­i­mate­ly a 25 to 30 per­cent decrease in auc­tion vol­umes for Gen­er­al Motor vehi­cles as well as Ger­man man­u­fac­tur­ers BMW and Mer­cedes-Benz. The decrease in the vol­umes for these man­u­fac­tures like­ly is due to the hold­ing of inven­to­ry in an effort to not over­sat­u­rate the mar­ket with vehi­cles in an effort to main­tain vehi­cle val­ue lev­els. Con­verse­ly, field ana­lysts have report­ed a spike in Land Rover vehi­cles through­out the auc­tion lanes this past month, which may be linked to an over­sup­ply in inven­to­ry of par­tic­u­lar mod­els at the moment.

Vehi­cle Val­ue Decline Slows in August 2015

  • The decline in vehi­cle val­ues slowed even fur­ther in August for 1- to 3-year-old used vehi­cles.
  • The aver­age vehi­cle val­ue declined 1.4 per­cent, or $250, in August com­pared to that of 2.6 per­cent and 2.2 per­cent in June and July, respec­tive­ly.
  • Sports car, high-end lux­u­ry and high-per­for­mance car seg­ments made up the worst-per­form­ing seg­ments – with 3.3 per­cent, 3.2 per­cent and 2.9 per­cent declines, respec­tive­ly. Mid-size truck, full-size truck and hybrid/alternative ener­gy seg­ments gained the most, mov­ing 0.5 per­cent, 0.4 per­cent and 0.2 per­cent, respec­tive­ly.
  • It’s no sur­prise that the pick­up truck seg­ments remain the top per­form­ing seg­ments this month, as they have been some of the best per­form­ing seg­ments since the start of the year. Despite a mere 1.5 per­cent increase in total con­struc­tion spend­ing between May and June, from a year-over-year per­spec­tive, con­struc­tion spend­ing is up rough­ly 12 per­cent, which great­ly ben­e­fits the truck seg­ments.



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