May Truck Sales Continue Decline

The May sales reports continue to arrive, often accompanied with a message that activity is picking up. To date, that activity is not translating into increased month over month sales. May has seen the largest drop in monthly sales for 2009. However, it is very incouraging that activity remains and hopefully it is increasing.

2009 Month-to-Month Report Sales:
January to February: 3% increase (not a typo)
February to March: 5% decrease
March to April: 4% decrease
April to May: 10% decrease

2009 vs 2008 Reported Sales:
January down 43%
February down 22%
March down 38%
April down 36%
May down 43%

Not surprisingly, used values continue to erode.

To see the most current values, visit www.truckbluebook.com

Understanding the Auto Red Book Market Values

We publish three different market values in the Red Book.

• Average Retail Value is the highest value published and represents what the Red Book staff considers to be the replacement cost for a good clean vehicle of same make/year/model/mileage. This value is what a consumer would generally pay for a vehicle. One can always find higher prices or lower prices on a certain vehicle, however, this published price is considered an average of the many vehicles researched when Red Book condition criteria is applied.
• Average Wholesale Value is generally what a dealer would pay for a good clean vehicle at the dealer only auto auction. Trade-in is another term generally used for this valuation category.
• Average Finance Value is a mathematical computation of Average Wholesale Value. Finance Value is always 90% of Wholesale. This is always the lowest value in the book. Finance is a conservative number to be used when there is not a physical inspection of the vehicle or the credit worthiness of a customer is questionable. One can always dispose of a vehicle at that price level providing it is in good clean condition.

My personal experience has been that my credit union loans at 100% of Red Book retail. I hear from some lenders who use 90% of Red Book Retail. Others may use Finance when the customer does not have a history with the lender.

There is no hard and fast rule which number to use as it is completely up to the user and should be tempered with their lending experience.

AUTO RED BOOK REVIEW: 2010 MAZDA3

ARB On The Cover Review: 2010 Mazda3

The Mazda3 is a bit like ordering a fat-free yogurt cup, then dumping hot fudge and whipped cream on top. On one hand, it fits right in with the guilt-free, small four-cylinder crowd. The problem is, you might actually enjoy driving it, which means something's in there that might not be good for you. The high fat content in this case comes in the form of mediocre gas mileage. The 2.0-liter four achieves 33-mpg on the highway, and the optional 2.5-liter four can only muster up an average highway mpg of 29. Some mid-sized sedans can better those numbers. But there's more to life than counting calories, and the 3 offers a little mild indulgence with smooth, plentiful power, relatively crisp, precise handling, and an interesting, refined cockpit. It is easy to pick a 2010 Mazda3 out of the crowd because it now features an exaggerated, clown-like grin across the front fascia. The grill-treatment should remind you that you're not driving your typical econo-box. And anyway, who wants to worry about the consequences when hot fudge tastes this good. At least you didn't order some huge land-barge. And that has to count for something, right? Right!

In Memory of Jim Sundy

Jim Sundy, a twenty year plus member of The Truck Blue Book Advisory Council, passed away this afternoon. Through his years on the council, he contributed greatly to the truck industry and to many personally.

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