Lane watch: Weekly wholesale-value declines stretch to nine consecutive weeks
Like many of us, the Black Book team celebrated the Fourth of July on Tuesday, so its newest installment of Market Insights appeared on Wednesday, giving analysts the chance to compile their data wrapping up June and glimpsing into the first day of the new month.
What Black Book found was all 22 vehicle segments softening in price, leading to an overall value drop of 0.44% and the estimated average weekly sales rate remaining steady at 46%.
“Declines are continuing across all segments with the overall market rate of weekly depreciation slowly increasing each week,” analysts said in the report. “Last week marked the ninth consecutive week of declines. In the auction lanes, the no sales are still abundant with sellers holding firm on floors and the buyers being cautious.”
Looking closer at cars, Black Book said its volume-weighted data showed a 0.42% price decrease for the segment last week, slightly less than the 0.44% decline registered a week earlier.
Analysts indicated prices in the subcompact car segment dropped the most sliding by 0.68% and marking the ninth consecutive week of declines. The average weekly value drop for those gas-sippers during that stretch has been 0.52%.
“Sporty car has been up and down in recent weeks with small changes, but last week the segment declined 0.18%,” Black Book said. “Pre-COVID, the sporty car segment began to report declines around the beginning of June.”
And when looking at cars by age, Black Book noticed values for 0- to 2-year-olds models dropping by 0.32% and prices for 8- to 16-year-old cars declining by 0.37%.
Turning to trucks, Black Book determined its volume-weighted data revealed a 0.41% value decrease overall for the segment, representing a slight uptick from the previous week’s decrease of 0.37%.
When considering the truck’s age, analysts noticed that 0- to 2-year-old models dropped in value by 0.40%, while the prices for 8- to 16-year-old units declined in price by 0.33%.
Leading the value declines among trucks were compact luxury crossovers and compact vans, which decreased by 0.77% and 0.76%, respectively. Both segments had an increase in depreciation from the week prior with the crossovers down 0.42% and vans down 0.35%, according to Black Book.
Analysts added that prices for full-size vans dropped only 0.17% last week, representing the smallest weekly change for the segment since the first week of May.
With the holiday landing on a Tuesday, Black Book is curious about what its next installment of data will contain.
“Wrapping up the month of June, we saw auction conversion rates and prices continue to drop. July will start off with a long weekend for a lot of folks. It will be interesting to see what July holds in store for the wholesale market,” Black Book said.
“As always, the Black Book team of analysts will keep their eyes on the market watching for developing trends and insights,” Black Book added.