After starting to rebound at the start of October, wholesale vehicle prices began to fall again as the month continued.
Prices fell 0.44 percent in the middle of the month and was followed by another 0.35 percent fall. The weekly fall at the start of the month was under 0.2 percent, according to BlackBook’s weekly Market Insights.
The decline in prices occurred, while the market faced some uncertainty with some auctions closed following the recent storms in the Southeast.
“Typically, the used vehicle wholesale market experiences seasonal declines, but last week’s reduction was less pronounced than what we usually observe. We are vigilantly monitoring auctions for potential flood-damaged vehicles to ensure they are correctly identified as outliers in the valuation process, thus maintaining pricing accuracy,” BlackBook noted.
Auction conversion rates were at 57 percent in the middle of the month and fell to 56 percent last week.
“Auction houses and buyers are advised to carefully evaluate the condition of vehicles affected by the storm and modify their purchasing and selling strategies in response to the possible changes in inventory and prices,” BlackBook suggested. “Understanding the extent of the damage will be critical in managing expectations and operational plans considering the storm’s impact.”
The nine car segments fell 0.21 percent collectively with eight categories seeing a decline in prices. Sub-compact cars were down 0.51 percent or $35. Luxury cars dropped 0.38 percent or $82. Premium sports cars were up slightly, 0.03 percent or $32.
Trucks and SUVs dropped in price 0.41 percent or $81. Twelve of the 13 categories were down led by sub-compact crossover SUVs falling 0.73 percent or $89. Compact vans were the outlier, increasing by 0.03 percent or $3.
