Auction conversion rates have remained above 60 percent to start the new year, with prices of wholesale vehicles continuing to decline.
According to BlackBook’s weekly Market Insights, wholesale vehicles were down 0.28 percent in mid-January after falling 0.37 percent and 0.38 percent in the first two weeks of the year.
“The market continues to gain momentum, with the overall pace of depreciation slowing and auction conversion rates once again surpassing 60 percent. These trends point to strengthening demand and suggest that an early spring market is already taking shape,” BlackBook stated.
“Despite broader pricing pressure, auction demand remained strong, supported by high conversion rates. Closed sales this week posted exceptionally high sell-through, with multiple lanes nearing full conversion.”
The nine car segments followed by BlackBook were down $41 or 0.27 percent, with cars less than two years old falling just 0.15 percent.
The 13 truck and SUV categories fell 0.28 percent or $52. Sub-compact luxury crossover SUVs dropped 0.55 percent or $82. Compact luxury crossover SUVs were the lone category to see prices rise, gaining $29 or 0.15 percent.
“Core mainstream vehicles with average mileage sold at or near average book, indicating stable floor pricing. Older, higher-mileage units frequently exceeded expectations, highlighting sustained demand for lower-priced inventory,” BlackBook reported.
