Lane watch: Clean cars in even higher demand
Perhaps it’s trouble getting parts or finding the labor to get the repair work done. Whatever the reason, Black Book auction observers noticed a distinct trend in the lanes this past week.
After recapping price movements that included overall wholesale prices dropping another 1.49%, Black Book said, “One of the things we noticed this week at the auctions was that buyers were more attracted to the vehicles with no issues, clean history reports, lower mileage and higher condition grades, not wanting to spend any more money than necessary to get it ‘front line ready.’
“With that said, we did see an increase in the overall auction conversion rates this week,” analysts added in the newest installment of Market Insights that also noted the estimated average weekly sales rate increased to 56% last week.
While not quite as dramatic as a week earlier, Black Book indicated overall car prices still dropped more than the overall market, sliding by 1.72% on a volume-weighted basis.
Older cars took more of a price hit, as values for 8- to 16-year-old models declined 2.15%. Prices for cars 2 years old and newer softened by 1.36%.
Black Book reported values for all nine car segments decreased last week, with four of those segments sustaining declines of more than 2%.
Leading the drops were sporty cars (down 3.55%), full-size cars (down 3.35%) and compact cars (down 2.28%).
Analysts added prices for premium sporty cars dipped 0.37%, calling it “a typical single week depreciation for this time of year.”
In the truck world, depreciation was on par with the overall reading, as Black Book pegged the volume-weighted decrease at 1.40%.
The drops were relatively the same no matter the truck’s age, as analysts said models 2 years old and newer generated a 1.18% price decrease. Values for 8- to 16-year-old trucks decreased by 1.32% on average.
Black Book pointed out that while all 13 truck segments declined in value last week, only two of them had value decreases greater than 2%.
One of them was the full-size luxury crossover/SUV, which saw values plummet 3.17%. Analysts indicated it was the third consecutive week with depreciation greater than 3% for those vehicles.
Black Book added that compact vans posted the smallest single week depreciation reading in six weeks, dropping by 1.07% last week. Analysts mentioned compact vans sustained an average weekly value decline of 3.07% during that six-week stretch.
Analysts wrapped up their latest report by saying, “With the first full week of December complete, prices are still declining in all reporting segments, and it looks like that may be a trend that continues for the rest of the year.
“With sellers more willing to lower their floors, the expectation is that larger-than-traditional seasonal declines will continue through the end of the year,” they continued. “As always, our team of analysts are focused on keeping their eyes on the market, watching for developing trends, and gathering insights.”