Wholesale Truck and SUV prices drop by 25% in Three Months?

XDCX · 06-18-2008, 10:55 AM

While reporting their earnings this morning, CARMAX reported that the wholesale/auction price of Trucks and SUVs dropped by almost 25% in the past three months.

If that's true, there have to be a number of dealers that are buried in Trucks and SUVs. Is it really that bad or is CARMAX looking for an excuse to suspend guidance?

Here's a link to the news report: http://www.thestreet.com/_yahoo/news...&cm_ite=NA

goodone414 · 06-19-2008, 05:01 AM

I Think CarMax might be conservative on that estimate. We are a small dealer in Western NC and just a couple of examples in the last few weeks are-
1) 2002 Dodge Durango 4x4 105,000 miles -- Black Booked Dropped $600 in two weeks. That's about a 12% decrease in 2 weeks in this market area.
2) 2003 Ford f-250 Crew Cab 7.3 Liter 4x4 XLT Leather Loaded 66,000 miles Brand Stinking New. NADA Trade $21,350, most any wholesaler offered $14,000
I don't it's $4.50 fuel that has the consumer so scared, I think it's the Media's ranting about possible $7.00/ gallon that has everyone in panic mode.

SHACOS · 06-19-2008, 05:56 AM

You make a good point about the media "artifically" push up gas price histeria, but I do think that $4 gas still has a major impact for all of those with very little disposible income.

XDCX · 06-19-2008, 08:56 AM

Quote:

Originally Posted by goodone414

I Think CarMax might be conservative on that estimate. We are a small dealer in Western NC and just a couple of examples in the last few weeks are-
1) 2002 Dodge Durango 4x4 105,000 miles -- Black Booked Dropped $600 in two weeks. That's about a 12% decrease in 2 weeks in this market area.
2) 2003 Ford f-250 Crew Cab 7.3 Liter 4x4 XLT Leather Loaded 66,000 miles Brand Stinking New. NADA Trade $21,350, most any wholesaler offered $14,000
I don't it's $4.50 fuel that has the consumer so scared, I think it's the Media's ranting about possible $7.00/ gallon that has everyone in panic mode.

I'd hate to think the situation could be even worse than CARMAX indicated but your examples are sobering.

I keep thinking about the dealer that took in a Truck or SUV in trade 60 days ago and now they're buried in it. Using your F350 Crew Cab as an example, even if a dealer took the vehicle in for $3K back of book 60 days ago he's probably $4K upsidedown today - that's a big hit to take on a single unit.

goodone414 · 06-19-2008, 11:16 AM

SHACOS Yeah your correct, $4 gas is a big deal for alot of people. Still I think most of these people would adjust their livestyles ie. eat out less, less entertainment and other precieved luxuries to drive the vehicle of their choice. They just can't cut back enough if fuel is $7 a gallon. We need our Government to stop ignoring the problem just because most of them are NOT AFFECTED and do something even if it's wrong for gosh sakes

06-18-2008, 10:55 AM	#1
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	Wholesale Truck and SUV prices drop by 25% in Three Months? While reporting their earnings this morning, CARMAX reported that the wholesale/auction price of Trucks and SUVs dropped by almost 25% in the past three months. If that's true, there have to be a number of dealers that are buried in Trucks and SUVs. Is it really that bad or is CARMAX looking for an excuse to suspend guidance? Here's a link to the news report: http://www.thestreet.com/_yahoo/news...&cm_ite=NA

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06-19-2008, 05:01 AM	#2
goodone414 Senior Member Join Date: Mar 2008 Posts: 174	I Think CarMax might be conservative on that estimate. We are a small dealer in Western NC and just a couple of examples in the last few weeks are- 1) 2002 Dodge Durango 4x4 105,000 miles -- Black Booked Dropped $600 in two weeks. That's about a 12% decrease in 2 weeks in this market area. 2) 2003 Ford f-250 Crew Cab 7.3 Liter 4x4 XLT Leather Loaded 66,000 miles Brand Stinking New. NADA Trade $21,350, most any wholesaler offered $14,000 I don't it's $4.50 fuel that has the consumer so scared, I think it's the Media's ranting about possible $7.00/ gallon that has everyone in panic mode.

06-19-2008, 05:56 AM	#3
SHACOS Super Moderator Join Date: Jan 2008 Posts: 838	You make a good point about the media "artifically" push up gas price histeria, but I do think that $4 gas still has a major impact for all of those with very little disposible income.

06-19-2008, 11:16 AM	#5
goodone414 Senior Member Join Date: Mar 2008 Posts: 174	SHACOS Yeah your correct, $4 gas is a big deal for alot of people. Still I think most of these people would adjust their livestyles ie. eat out less, less entertainment and other precieved luxuries to drive the vehicle of their choice. They just can't cut back enough if fuel is $7 a gallon. We need our Government to stop ignoring the problem just because most of them are NOT AFFECTED and do something even if it's wrong for gosh sakes