Lane watch: 3 vehicle segments sustain value drops of more than 3% in single week
Black Book watched three vehicle segments decrease in value last week probably more than the appeal for cranberry sauce or canned yams still on a grocery store shelf two days after Thanksgiving.
Black Book reported that three segments depreciated by more than 3% a week ago, including work vans, full-size luxury SUVs and compact cars.
And with many auctions idling their lanes for two days last week to enjoy the holiday, Black Book also mentioned in its newest installment of Market Insights that the estimated average weekly sales rate dropped to 53%.
So, does it mean bargains are to be had by dealers shopping for inventory with more intensity than grandparents on the hunt for toys? Or are consignors wondering if the Grinch took their strong values with the last can of Hoo Hash?
“Despite being a holiday week, the market continued to experience significant declines last week. Auction attendance and sales rates also declined,” Black Book said in its report that highlighted overall wholesale prices softened by another 1.49%.
“From what we were able to observe, the wholesale market continued to decline as we reach the last five weeks of the year,” analysts continued. “It will be interesting to see what happens in the weeks to come. More declines or will it level off?”
At least among cars, the value decreases are intensifying. On a volume-weighted basis, Black Book pegged the overall car segment decline at 1.82% last week. A week earlier, car prices softened by 1.35%.
All nine car segments decreased last week, with six of those segments reporting declines greater than 1%, according to Black Book’s tracking.
Analysts added that prices for 0-to 2-year-old cars dropped by 1.52%, while values for 8- to 16-year-old models slumped by 2.10%.
Those previously mentioned compact cars plummeted in value by a record-setting mark of 3.84%.
Fellow fuel-efficient units — subcompact cars — sustained a notable price drop for the third week in a row, according to Black Book, which said those vehicles decreased by 1.80%.
“The luxury car segments were the only segments to have depreciation closer to typical seasonal trends,” analysts added.
Among trucks, depreciation slowed a little bit overall, as Black Book’s volume-weighted data showed overall truck prices decreased 1.35% last week. That’s not quite as much as the drop recorded a week earlier when it was 1.53%.
Analysts indicated prices for all 13 truck segments declined last week, with nine of them dropping by more than 1%.
Black Book said compact vans and full-size vans showed “incredible strength throughout most of the pandemic but are now in a state of correction.” Analysts watched prices for compact vans plummet by 4.25% and values for full-size vans sink by 3.19%.
Analysts added compact vans now have had an average weekly price decline of 3.49% over the past four weeks.
Black Book also pointed out that full-size crossovers sustained large value declines last week, with the mainstream segment dropping by 1.75% and the luxury variants sliding by 3.20%.
Also of note, prices for compact crossovers dropped another 1.40%, marking the fifth consecutive week of a decline exceeding 1% in Black Book’s tracking.
With Thanksgiving now in the books and more holidays upcoming, Black Book closed by saying, “as always, our team of analysts are focused on keeping their eyes on the market, watching for developing trends and gathering insights.”