Slightly lower depreciation in wholesale vehicle values last week
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Though above recent historical averages, wholesale vehicle price depreciation last week slowed from the prior week, and auction lane activity showed “disciplined bidding behavior,” according to the latest Market Insights report from Black Book.
Overall, wholesale prices were down 0.70% last week, compared to a 0.73% drop the week before. During the 2017-2019 period, the average depreciation for the same week was 0.44%, Black Book said.
Car segment prices dropped 0.53% after a 0.52% decline the previous week, while truck/SUV segment prices were down 0.75%, following a 0.80% drop.
On the car side of the market, one interesting find that Black Book points out that is that subcompact and midsize cars have now gone three straight weeks with declines of at least 0.80%, even with rising fuel costs.
Those two segments (down 0.85% and 0.89%, respectively) had the most significant decreases among car segments.
Among trucks, prices were down in each of the 13 segments and in each age group, Black Book said.
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“Performance varied significantly across segments, with only a handful of niche categories posting gains, reinforcing that condition, equipment, and overall retail desirability remain the primary drivers of wholesale values,” Black Book said of overall price changes.
“If current supply levels persist, we expect continued pressure on mainstream truck and SUV segments while closely monitoring whether buyer demand strengthens as October progresses.”
Meanwhile, the conversation rate at auctions was 56%, same as the week before.
This suggests that “buyer participation remained stable despite continued pricing pressure,” Black Book said, later noting that, “Although overall sell-through remained steady, buyers continued to be highly selective, favoring vehicles with desirable configurations, strong condition, and retail-ready appeal.”