The wholesale used vehicle market experienced its largest single-week plunge in 10 months this past week.
The overall market dropped 1.1 percent, continuing the slide since May, according to the BlackBook Weekly Market Insight.
“After three months of accelerated wholesale price drops, the first week of August brought the largest single-week price decline for the overall market since last October,” BlackBook reported. “All the segments and vehicle ages were affected, but more affordable older models did not drop as much as the rest of the market. Retail asking prices are softening at a much lower rate, and the market is in a state of trying to find the new “normal” of pricing in both wholesale and retail.”
This past week’s fall came after the week-to-week drop had slowed to 0.37 percent at the end of July. Prices fell 0.53 percent and 0.73 percent in the previous two reports.
Eleven of the 22 segments followed by BlackBook experienced drops of more than 1 percent. Compact cars fell 2.12 percent or $286, and full-size crossover SUVs dropped 2.25 percent or $672.
Collectively, the nine car segments were down 1.36 percent or $237. Sub-compact cars, mid-size cars, full-size cars, near luxury cars and prestige luxury joined compact cars in dropping more than 1 percent.
The 13 truck and SUV segments dropped on average 0.98 percent or $224. Sub-compact, compact and mid-size luxury crossover SUVs models fell more than 1 percent, along with minivans, small pickups and full-size crossover SUVs.
Sales at auction remained at 49 percent.
“Even though the auction conversion rate was stable, wholesale prices dropped as sellers lowered their floors and buyers were not willing to pay any more than they had to. Is this a wakeup call or just a blip in the market in this wild world of the car business?” BlackBook noted.
Used retail prices stayed at near the same as the start of year for a second straight week, according to the retail listings price index. Prices had reached 1.03 earlier this summer.
Inventory fell from 1.02 to 1.01 on the index.
Vehicles are taking 52 days to turn.
