March 6, 2017

“Tax refund checks have begun to arrive, prompting increased interest in small cars. This has led to better retention in values and higher auction sale percentages for these vehicles.”

Anil Goyal, Senior Vice President of Automotive Valuation and Analytics

Model Years: 2008-2014, Volume Weighted Wholesale Average Values, Weekly Change from 2/24/17 to 3/3/17

Small cars, small SUVs and Vans Performed Best Last Week

Volume-weighted, overall car values decreased by 0.51% last week. This is higher than the average

depreciation rate of 0.39% seen in the previous four weeks.

In car segments, Prestige Luxury Car, Luxury Car and Premium Sporty Car segments declined the most,

dropping by 0.98%, 0.65% and 0.52%, respectively.

Volume-weighted, overall truck values decreased by 0.31% last week. This is similar to the average

depreciation rate of 0.33% seen in the previous four weeks.

In truck segments, Mid-Size Luxury Crossover/SUV and Full-Size Luxury Crossover/SUV segments

declined the most, dropping by 0.56% and 0.55%, respectively.

-$8-0.16% -$19

-0.30%-$22

-0.30%-$27

-0.32% -$68-0.47%

-$108-0.65%

-$271-0.98%

-$35-0.30%

-$189-0.52%

-$68CARS

-0.51%

-1.2%

-1.0%

-0.8%

-0.6%

-0.4%

-0.2%

0%

+0.2%

WEE

KLY

CH

AN

GE

-$8-0.07%

-$16-0.18% -$37

-0.30% -$77-0.44%

$00%

-$66-0.43% -$102

-0.56%

-$156-0.55%

-$35-0.38%

+$57+0.71%

-$37-0.27%

-$34-0.32%

+$9+0.05%

-$47TRUCKS-0.31%

-1.0%

-0.6%

-0.2%

+0.2%

+0.6%

+1.0%

WEE

KLY

CH

AN

GE

2

March 6, 2017

Sentiment from the Auction Lanes

Our editors and personnel attend about 60 auctions every week across the country to provide key insights:

“Good sale today, smaller cars actually had a lot of attention with the number of buyers being above average.” Jim from TN

“Prices in this location still seem high on most pickups and SUVs.” Jim from WA

“Lots of lookers here today with clean Compact cars in demand.” Doug from TN

“Nice sunny day here with a normal amount of consignment but a bit low on buyers.” Laura from GA

“Very little online buying today but on-site dealers were busy. Units below $5000 were selling quickly.” Terry from NC

“Good consignment here today with above normal amount of buyers.” Kyle from CA

Monthly Depreciation by Segment (2/1/17-3/1/16)

Overall, depreciation was 0.8% last month. Small cars, compact van and small pickup segments

performed the best (under 0.5%) while luxury vehicles declined the most (over 1.5%).

Vehicle Highlight 2018 Chevrolet Equinox has a base MSRP starting at $24,475 including factory destination charge. Trim levels include L, LS, LT and Premier with optional AWD except on L. Competitors include Honda CR-V, Mazda CX-5, Ford Escape, VW Tiguan, Hyundai Tucson, Subaru Forester, Jeep Cherokee, Nissan Rogue, Kia Sportage and Toyota RAV4.

This week’s report includes our Monthly Edition Supplement on Specialty Markets.

3

March 6, 2017

Barrett-Jackson Scottsdale Tops $100,000,000 “As we discussed last month, the January collectible vehicle auctions were huge,

with over $350,000,000 in sales. As usual, the biggest event was Barrett-Jackson,

which celebrated its 46th anniversary with $100,000,000 in sales. Tens of thousands

of collectors attended in person, and hundreds of thousands more watched on television and online.

Although all of the Scottsdale auctions are amazing, Barrett-Jackson is certainly the most over the top.”

Eric Lawrence, Director of Specialty Markets

Although it wasn’t quite the top seller, the Chevrolet Engineering Research Vehicle (CERV-1) was the star of the show. The open wheeled racer was developed in 1960 by Zora Arkus-Duntov, and designed by Larry Shinoda, as a high performance Corvette test bed. Rumor has it that Chevrolet bought it back for their collection.

One of the advantages of having an auction that runs for nine days and offers over 1,700 vehicles is that there is always something for everyone. One thing that really caught my eye this year was the large number of ultra low mileage Fox Body Mustangs (1979-93) that sold for huge money. The biggest seller was the 1990 LX 5.0 “7-Up” convertible with 16 original miles that sold for $82,500, but the 638 mile 1989 LX 5.0 Coupe that brought $71,500 was not too far behind. Throw in the 1993 LX 5.0 convertible with 165 miles that sold for $44,000 and the 1985 7 mile SVO that brought $63,800, and we might have seen the beginning of a trend! The only question is “what do you do with them”? Similar cars with “normal” miles sell for well under $10,000, so I don’t expect to see these on the street any time soon.

Notable Recent Auction Sales Include:

1960 Chevrolet CERV-1 $1,320,000

1964 Aston Martin DB5 Coupe $1,485,000

1930 Duesenberg Model J Dual Cowl Phaeton $880,000

2005 Porsche Carrera GT Coupe $616,000

1965 Shelby GT350 Fastback $445,000

1963 Chevrolet Corvette Split Window Coupe Fuelie $385,000

1969 Mustang Boss 429 Fastback $385,000

2015 Ferrari F12 Berlinetta $330,000

1957 Cadillac Eldorado Biarritz Convertible $167,000

1987 Buick Grand National GNX $117,000

Photo courtesy of Barrett-Jackson

12000

12500

13000

13500

14000

14500

15000

15500

Vintage Light Duty Trucks

SPECIALTY MARKETS:

COLLECTIBLE CARS

4

March 6, 2017

Auction Values Mixed But Relatively Stable

“As we head into warmer weather, after an unusually mild winter in many parts

of the country, we’re noticing auction values that are more stable than we had

seen in recent months. One thing in particular that caught my eye was the continued presence of units,

especially on the motorized side, that were in extremely poor condition. Although we exclude these

damaged/dilapidated units from our calculations, it’s interesting to note that so many are out there.” Eric Lawrence, Director of Specialty Markets

For Motor Homes (including Class A, B, and C)

Average selling price was $42,697, up $1,253 (3.0%) from previous month

One year ago, the average selling price was $34,902

Auction volume was down 17% from the previous month

For Towables (including Travel Trailers and Fifth Wheels)

Average selling price was $12,300, down $310 (2.5%) from previous month

One year ago, the average selling price was $10,822

Auction volume was up 20% from previous month

30000

32000

34000

36000

38000

40000

42000

44000

46000

Jan

-13

Feb

Mar

Ap

rM

ay Jun

Jul

Au

gSe

pO

ctN

ov

De

cJa

n-1

4Fe

bM

arA

pr

May Jun

Jul

Au

gSe

pt

Oct

No

vD

ec

Jan

-15

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-16

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-17

Motor Home Value Trends

9000

9750

10500

11250

12000

12750

13500

Jan

-13

Feb

Mar

Ap

rM

ay Jun

Jul

Au

gSe

pO

ctN

ov

De

cJa

n-1

4Fe

bM

arA

pr

May Jun

Jul

Au

gSe

pt

Oct

No

vD

ec

Jan

-15

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-16

Feb

Mar

Ap

rM

ayJu

ne

July

Au

gSe

pt

Oct

No

vD

ec

Jan

-17

Travel Trailer and Fifth Wheel Value Trends

SPECIALTY MARKETS:

RECREATIONAL VEHICLES

5

March 6, 2017

Powersports Market Beginning to Pick Up “It has taken a little longer than usual this year, but the Powersports market is finally starting to see significant increases in value across a broad range of segments.”

Scott Yarbrough, Motorcycle & Powersports Editor

The rate of increase in Powersports values is somewhat lower this month than in years past. Just what is holding things back this year is not clear; sometimes it just takes a bit of time for things to get going, and in other cases, a slow start like this is a sign of a weak selling season ahead.

The biggest gainers this month are the Cruisers, up by an average of about 2 percent, but this does not tell the whole story. In a significant change from normal patterns, the metric models have seen much larger increases than their domestic counterparts, averaging closer to 3 percent. For comparison, the domestic V-Twins are up by only about 1 percent.

The other somewhat surprising big movers this month are the Utility vehicles. This segment, which has been one of the strongest performers over the past several years, has been coming down to earth a bit over the past few months and that pattern continues again this month. They are down 3.1% on average.

-2.10%

2.00%

1.40%

0.60%

1.50%

-0.30%

-2.50%

1.20%

-3.10%

1.60%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

Motorcycle & Powersports Percent Changes February to March 2017

SPECIALTY MARKETS:

POWERSPORTS

6

March 6, 2017

Higher Depreciation for 2 out of 3 Heavy Duty Late

Model Segments

“With more quantities of Class 8 Tractors showing up at auction towards the end of February, late model depreciation increases.” Charles Cathey, Editor – Heavy Duty Truck Data

Late model Over the Road Tractor depreciation increased by 0.4% and late model Regional Tractor depreciation

increased by 0.3% respectively. With several large auctions taking place towards the end of the month having larger

quantities of like kind inventory, the numbers started to fall. Condition and mileage always play a key role in the

value of a truck and those attributes figured in to the value drop as well. The later year model tractors in the 2006-

2013 category dropped at a similar rate, however the strong showing of the older units helped them depreciate less

than the previous month. The Construction/Vocational market continues to depreciate at a very low rate.

DATE

Construction/Vocational Over the Road Trucks & Tractors Regional Tractors MODEL YEARS Value $ Change % Change Value $ Change % Change Value $ Change % Change

03/01/17 83,829 -395 -0.5% 67,362 -821 -1.2% 56,888 -735 -1.3% 2014-2015

02/01/17 84,225 -384 -0.5% 68,183 -531 -0.8% 57,623 -608 -1.0% 2014-2015

2014-2015 HD Construction/Vocational segment dropped an average of $395 (0.5%) in Febuary compared to the average decline of $384 (0.5%) in January .

2014-2015 HD Over the Road Tractor segment dropped an average of $821 (1.2%) in Febuary compared to the average drop of $531 (0.8%) in January .

2014-2015 HD Regional Tractor segment dropped an average of $735 (1.3%) in Febuary compared to the average depreciation of $608 (1.0%) in January .

DATE

Construction/Vocational Over the Road Trucks & Tractors Regional Tractors MODEL

YEARS Value $ Change % Change Value $ Change % Change Value $ Change % Change

03/01/17 41,385 -303 -0.7% 31,242 -394 -1.2% 22,551 -362 -1.6% 2006-2013

02/01/17 41,688 -372 -0.9% 31,636 -430 -1.3% 22,912 -432 -1.9% 2006-2013

2006-2013 HD Construction/Vocational segment dropped an average of $303 (0.7%) in Febuary compared to the $372 (0.9%) in January .

2006-2013 HD Over the Road Tractor segment dropped an average of $394 (1.2%) in Febuary compared to $430 (1.3%) average deprciation in January .

2006-2013 HD Regional Tractor segment dropped an average of $362 (1.6%) in Febuary compared to the average drop of $432 (1.9%) in January .

-$1,600

-$1,400

-$1,200

-$1,000

-$800

-$600

-$400

-$200

$0

+$200

Mo

nth

ly C

han

ge

Average Wholesale Value Changes (Market)

Construction/Vocational Over the Road Trucks & Tractors Regional Tractors

SPECIALTY MARKETS:

HEAVY DUTY

7

March 6, 2017

Slight increase in depreciation for Medium Duty Segment

“Steady supply of box trucks putting downward pressure on the rest of the

market.”

Josh Giles, Senior Truck Editor

The wholesale market depreciated slightly more in February versus January. The steady supply of box

trucks is helping to keep downward pressure on the Medium Duty Market. That being said, the right

spec’d unit will always bring a premium. Wrecker, dump, reefer and other vocational bodies are in

demand and bringing strong money at auctions all across the country. As we get closer toward spring

we expect to see continued depreciation in these segments as more and more trucks become available

in the near future. Recent reports show orders for Class 3 - 7 trucks are down, which may result in a

shortage of used trucks down the road. This may help improve and stabilize the medium duty market

as we look further into the future.

DATE

Medium Duty MODEL

YEARS

DATE

Medium Duty MODEL

YEARS Value $ Change % Change Value $ Change % Change

03/01/17 18,285 -338 -1.8% 2006-2013 03/01/17 41,851 -663 -1.6% 2014-2015

02/01/17 18,623 -278 -1.5% 2006-2013 02/01/17 42,513 -498 -1.2% 2014-2015

Fuel prices have been fairly stable for the past couple of weeks. We are currently paying an average of $2.57 per gallon for diesel. This is a $0.02 drop from last month and a $0.59 increase in just one year. Reports are indicating that fuel prices will continue to slowly increase through 2017 will normal seasonal declines.

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www.blackbook.com| info@blackbook.com Opt-in to receive reports from Black Book at http://www.blackbook.com/insights/market-insights

+$0.01

+$0.00-$0.01-$0.02-$0.01

+$0.01

+$0.59+$0.55

+$0.53+$0.50

+$0.47

+$0.42

02/13/1702/06/1701/30/1701/23/1701/16/1701/09/17

Diesel Price Changes

Price Chg/Week Price Chg/Year

SPECIALTY MARKETS:

MEDIUM DUTY