LAWRENCEVILLE, Ga. -

You could say black is white or wet is dry when considering the current state of the wholesale market, since rental car companies now are part of the primary group of buyers at the auction rather than being typical consignors.

Along with releasing a new white paper on Tuesday, Black Book also looked to summarize this zany place called the wholesale market, where values now have climbed for 10 weeks in a row “during a time that traditionally experiences large week-over-week declines.”

Analysts tried to make sense of their newest data for the week that closed on Saturday in its latest installment of Market Insights. Overall, wholesale prices moved another 0.65% higher; almost the exact opposite of the average decline of 0.67% seen during the same week in 2017 through 2019.

“Limited inventory continues to be the driver of the market strength, particularly on vehicles that are desired by rental companies,” Black Book said in the report.

“The larger independent dealers are no longer the ones fueling the price increases, but instead it is the rental companies that need used vehicles to supplement their inability to get new inventory for their fleets,” analysts added.

Perhaps reinforcing the precarious spot occupied by rental car companies, Black Book said that on a volume-weighted basis, overall car segment values increased 0.83%. That up from the rise of 0.67% seen during the previous week.

Analysts indicated all nine car segments generated price gains again last week, led by compact cars (up 1.45%), which now have increased for the 12 consecutive weeks for an average weekly rise of 0.75%.

In fact, Black Book said compact car values have jumped by more than 1% during three of the past five weeks.

While not quite as much as the week prior, analysts added that prices for midsize cars rose another 0.95%. The streak of 12 consecutive weeks of upticks also includes a jump of 1.08% two weeks ago.

Switching to trucks, the overall, volume-weighted rise came in at 0.56%, according to Black Book, which also said all 13 segments moved higher. That’s not quite as much as a week earlier when the increase was 0.66%.

However, and perhaps reflecting more of that impact of rental car company buying demand, three truck segments posted value gains exceeding 1%. They included compact crossovers (up 1.03%), subcompact luxury crossovers (up 1.10%) and compact luxury crossovers (up 1.15%).

Finally, analysts said prices for full-size vans rose another 1.02%, as values for these commercial workhorses have now increased during 40 of the past 41 weeks.

5 highlights of latest white paper

With so much happening this year, Black Book released its latest white paper titled, The Automotive Industry Crystal Ball: Retail Market Insights.

In another news release, Black Book said the report insights include:

• How dealers, OEMs, and finance companies can use these insights to gauge brand health, consumer sentiment, pricing and more

• A look into inventory levels, including how new vehicle active listings are down 67% year-over-year, with cars down 74% and trucks down 57%

• What percentages of used vehicles of a brand is at a competitor’s used dealership

• Which state is a popular market for used electric vehicles, but the days to turn is high compared to the rest of the country, indicating an oversaturation of vehicles

• How remarketing teams can use the days’ supply and days to turn metrics as indicators for how wholesale market pricing is expected to move, which is essential knowledge in floor setting

“The automotive market has become extremely competitive, so finding new ways to gain an edge to push business to the next level is critical,” Black Book said. “Retail data is a powerful tool that can help improve your success in the market.

“Whether you are a dealer (franchised or independent), an OEM, or a lending institution, retail data can help you make better informed decisions that improve your business’s success,” Black Book continued. “Retail data provides a crystal ball into where the market is heading by looking at key metrics that give insight into brand health, consumer preferences, pricing and more.”

The latest white paper can be downloaded by going to this website.