Recession and Gas Prices Impacting Used-Car Value Stability
Kelley Blue Book's November Market Report Now Available
IRVINE, Calif., Nov. 11 /PRNewswire/ -- Kelley Blue Book www.kbb.com, the leading provider of new- and used-vehicle values, announces that its November Monthly Market Report is now available at http://mediaroom.kbb.com/blue-book-market-report. This month's report takes a look at top movers in vehicle values, brand and segment value changes month-over-month and provides an in-depth analysis on how the recession and gas prices are affecting the stability of the marketplace.
Market Report Excerpt:
With people out of work or not working as much as they'd like, families are trying to reduce spending wherever possible, and this slow in spending has hit the auto industry in various ways. One outcome Kelley Blue Book is seeing is that consumers are holding onto vehicles longer, staying away from short-term leases, and if they absolutely must buy a car, they are looking more and more at used cars. In a recent Kelley Blue Book Market Intelligence study, more than half of car shoppers surveyed said they intend to keep their next vehicle for six years or longer. There also have been reports of consumers foregoing auto repairs and pocketing the insurance money resulting from auto insurance claims, just to keep the lights on and dinner on the table.
"In addition to lack of demand in the new-car market and unexpected demand in the used market, a lack of trade-ins coupled with reduced sales to fleet companies also has had somewhat of a negative impact on used-vehicle supply," said Juan Flores, director of vehicle valuation, Kelley Blue Book. "The shortage at auction has even led some dealers to scour eBay and Craigslist in order to supplement their used-vehicle inventory via private party listings."
Values have been relatively stable over the past several months, but the current stability in the marketplace is highly dependent on current supply and demand conditions. Any number of factors could play a significant role in altering this dynamic, which could once again lead to volatility in the marketplace.
About the Kelley Blue Book Monthly Market Report
Each month, the Blue Book Market Report explores the state of the automotive industry by analyzing Kelley Blue Book Wholesale Values, which are produced on a weekly basis from actual transaction data with economical and regional factors applied. The report also delves into developments in residual values every other month, and how the market influences these percentages in a variety of segments. Furthermore, the Market Report includes data from both Eco Watch™ and Market Watch® studies conducted by Kelley Blue Book Marketing Intelligence. Eco Watch tracks in-market new-car shoppers' opinions on fuel prices, alternative fuel-related technologies, environmental issues and vehicle consideration, while Market Watch measures new car pricing report views on kbb.com, capturing shopper activity and interest in specific vehicles.
The forthcoming December Market Report will have a full commentary and forecast for both used-vehicle values and residual values of 2010 model-year vehicles. For more information, visit www.kbb.com/media.
About Kelley Blue Book (www.kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company's top-rated Web site, www.kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book® Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book® Official Guide. According to the C.A. Walker Research Solutions, Inc. - 2009 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. Kbb.com is a leading provider of new car prices, car reviews and news, used car blue book values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com.
SOURCE: Kelley Blue Book
Web site: http://www.kbb.com/
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