Thursday, December 16, 2010

Year in Review

It’s been an interesting year. The good news is that the scary price slide seems to have stopped. We’re in a recovery period, certainly. We use average depreciation as a barometer on the roughly 100 models we track in this report.

For example, if you compare the average monthly depreciation across all tracked models from this year (0.44%) to 2009 (0.81%) and 2008 (2.1%), you can see that the trend is moving in the right direction.

Over the last 4 weeks (the time between the last market report and this one), luxury prices on 16 of the 96 covered vehicles fell. The other 80 vehicles saw no statistically significant drop. Overall, average depreciation across all models was 0.77%.

Again, the majority of the vehicles stayed flat (83% had statistically insignificant changes). The 17% that did fall, however, fell over 4%. (This is about the same as October.)

Compared with last month, overall average depreciation across ALL models is lower. Last month, overall average depreciation was 1.0% vs. 0.77%.

Just like last month, we don’t interpret any of the depreciation numbers as ominous. In fact, given what we’ve all witnessed over the last 2 years, we’re feeling more and more optimistic.

Remember, the Market Report prices, while intended ONLY as a guideline, do represent the real money on these vehicles today.

Average numbers are a helpful trend, but absolutely no substitute for careful research. Which is, after all, why you’re reading this report.

Also, even though this report is a great research tool, our strong suggestion is that you use the iLUXCARS System for accurate, up-to-the-minute research on every single deal.

Remember, iLUXCARS is much, much more than a way to value your trades – iLUXCARS is a complete solution; from the time your customer walks into your dealership, through getting paid and the car off your lot fast.

Complete and guaranteed.

Our goal is simple and consistent – help you make more deals. Something we’ve been doing for over 5 years. So, if you’re not already using us to value every single trade, this is a great time to start.

Like we keep saying, Faster. Safer. Better.

Happy new year.

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