The rate of depreciation in the wholesale used vehicle market slowed in the final week of 2023.
The overall market dropped 0.7 percent. It was the first time for it to dip under 1 percent since early November, according to BlackBook’s weekly Market Insights.
“With the holidays in full swing, activity at the auctions has slowed down as dealers await the 13th month of the year, that final week of the year,” BlackBook reported. “The success of the retail sales this week will say a lot about how the new year will start.”
The nine car categories fell $73 or 0.51 percent, led by a 0.77 percent or $269 fall in the prestige luxury car division. The compact car group dropped only 0.3 percent or $31.
“The compact car segment had a dramatic decrease in depreciation, 0.3 percent last week compared with the prior week’s decline of 1.13 percent,” BlackBook noted. “This was the lowest single-week depreciation for the segment since late October.”
Trucks and SUVs dropped 0.78 percent or $150. Four SUV crossover categories – full-size, sub-compact luxury, compact luxury and full-size luxury – fell by more than 1 percent and between $208 and $282. Trucks dropped less than 1 percent.
The auction sales rate decreased to 52 percent.
“The market was slowing down due to the holidays, with more people traveling and preparing to spend time with family and friends, and this was apparent as we saw auction conversion rates dropping last week,” BlackBook said. “Typically, the last week of the year is strong for retail sales, but this year with high interest rates and used vehicle prices on a steep downward decline so far this quarter, we will have to wait and see how the year finishes.”
The retail price index fell to 0.93. The inventory index was at 0.96. Vehicles are taking 62 days to turn.
