As typical as fans running on high speed above the auction lanes this time of year, Black Book is seeing that the wholesale market currently is demonstrating expected seasonal depreciation trends with car prices falling slightly more than trucks, SUVs and CUVs.
“Depreciation rates have remained consistent during the last four weeks for both car and light truck segments. The used-vehicle market is relatively strong for this time of the year,” said Anil Goyal, executive vice president, operations, at Black Book.
According to the latest Black Book Market Insights report, volume-weighted, overall car segment values decreased by 0.34 percent last week. In comparison, the values had decreased at a similar rate per week during the previous four weeks.
Among car segments, compact cars, sporty cars and premium sporty cars depreciated the least last week, with declines ranging from $10 to $38.
Again volume-weighted, editors determined overall truck segment values (including pickups, SUVs and vans) decreased by 0.25 percent last week. Just like cars, truck values had softened at a similar rate per week during the previous four weeks.
Within the truck segments, compact vans, minivans and compact luxury crossover/SUVs decreased the most last week, dropping by 0.81 percent or $74, 0.55 percent or $71, and 0.45 percent or $88, respectively.
The truck discussion continued with some of the anecdotes from the lanes Black Book collected from representatives stationed at nearly 60 sales nationwide. Two truck tales surfaced in the Midwest, including
— From Michigan: “Trucks have seen a price rise in the last couple of weeks, which is unusual for our market in July.”
— From Indiana: “Business is good, and dealers are holding onto their trade-ins. Nicer vehicles are scarce as are trucks.
One other observation also originated in the Midwest as the Black Book representative in Wisconsin added, “Active bidding and selling in most lanes even as dealers complain about high prices.”
The two other anecdotes Black Book shared might mimic what’s happening at your local sale.
“Our consignment has been low which has kept the values up. Bidding is quite good on most vehicles,” the lane watcher in Texas said.
A Black Book observer in Florida mentioned, “The older cars continue to struggle, but buyers are paying premium prices for cleaner and newer vehicles.”