Lane watch: Slight slowdown seen after Labor Day
Charts courtesy of Black Book.
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Perhaps you, too, had a little trouble getting back in the swing of things after Labor Day weekend. Black Book spotted a similar scenario unfolding at the auction since wholesale values dipped by 0.21% and last week’s auction conversion rate ticked down to 61%.
Meanwhile, dealers might not have had much of a holiday break since Black Book said its estimated used retail days to turn improved and is now at roughly 37 days.
“Post-Labor Day, lane activity slowed as conversion rates dipped, and depreciation resumed in line with late-summer norms,” analysts said in their latest installment of Market Insights released on Tuesday. “While last year was unusual — showing positive trends both before and after the holiday — this year’s pre-Labor Day period was merely stable, with a few segments gaining. That strength faded last week as depreciation followed the more typical early September pattern.
“September started off with everyone celebrating the Labor Day holiday on Monday, and some of the auction houses were closed. This contributed to the dip we saw in auction conversion rates,” analysts added in the report.
The post-holiday period generated a few other notable developments in the lanes, according to Black Book tracking, including:
—After 15 consecutive weeks of value declines that averaged 0.49% per week, prices for compact cars increased last week, rising by 0.24%. That’s the largest single-week gain for the segment since the first week of May.
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—Analysts pointed out values for full-size and small pickups rose two straight weeks going into Labor Day. But following the holiday, both segments dropped, sliding by 0.32% and 0.14%, respectively.
—The oldest units on the block also softened in price, as Black Book noticed values for cars 8 to 16 years old slid by 0.33%. Values for trucks in that age range decreased by 0.31%.
—All told, just three of the 22 vehicle segments watched by Black Book posted value gains last week.
What might happen later in September when the first official day of fall arrives?
“As always, our team of analysts are focused on the keeping their eyes on the market for developing trends and gathering insight,” Black Book said.