The drop in wholesale vehicle prices has continued into July.
The overall wholesale market fell 0.47 percent last week, following a fall of 0.44 percent at the start of the month. The market has been on a steady decline since the start of May.
“With the holiday last week, many of the auctions had fewer vehicles offered for sale and there were less bidders trying to obtain inventory. As for valuations, the market continued to decline, but the rate of decline has been consistent in recent weeks, staying below half a percent per week,” the BlackBook Weekly Market Insights reported.
All 22 vehicle segments followed by BlackBook fell in price last week.
Cars lost on average $92 or 0.52 percent. Sub-compact cars fell more than 1 percent and lost $101. It joined near luxury cars, luxury cars, prestige luxury cars and premium sports cars in dropping more than $100.
The 13 truck and SUVs fell on average $106 or 0.45 percent. Sub-compact luxury crossover SUVs dropped $191 or 0.95 percent. The midsize luxury crossover SUV lost $218 or 0.73 percent. BlackBook noted minivans fell 0.87 percent, $175, its largest depreciation since December 2022.
The sales rate at auction has remained at 46 percent to start July.
“July started off much like June ended, with wholesale prices continuing to move downward and continued low auction conversion rates,” BlackBook reported. “The first week of July, we saw a slight increase in auction volume and more repossessions hitting the lanes. The 2023 trucks and full-size SUVs that we see going through the auction are still bringing strong money. It appears that the ‘’summertime slowdown” is in full effect as we move into July.”
On the retail price index, the prices have remained steady and above the start of 2023 at 1.02. The retail inventory is at 1.03, near the high-point of the year. Vehicles are averaging a 53-day turnaround.
