Depreciation on the wholesale used vehicle market slowed this week.
Prices dropped 1.05 percent, the market’s smallest decrease since the first week of November, according to BlackBook’s weekly Market Insights.
“The market continues the rollercoaster ride, but last week, the declines did show signs of slowing with all segments depreciating less than 2 percent for the first time since the last week of October,” BlackBook reported.
The nine car segments fell 1.03 percent or $149. Sports cars declined 1.62 percent or $326. Compact car prices slowed their decline, falling 1.13 percent or $118.
“The compact car segment has had exceptionally high depreciation in recent weeks, one week even by as much as 4.32 percent,” BlackBook noted. “Last week, the rate of decline slowed to 1.13 percent.”
The 13 truck and SUV segments dropped 1.06 percent or $207. Compact vans had the largest percentage drop of 1.71 percent, $193. Full-size luxury crossover SUVs were down $586 or 1.56 percent.
The auction sales rate decreased slightly to 55 percent.
“We saw a slower decline in the market overall. With only two weeks left in the year, we should see the market more stable as we finish up 2023,” BlackBook reported. “The prior four weeks we saw declines in the wholesale market we haven’t seen in years. We did see auction inventory increase and auction conversion rates drop 1 percent, as buyers are still a little cautious, being careful not to overpay for inventory at a time where prices are expected to continue to fall.”
The retail price index stayed at 0.94. The retail inventory index fell to 0.98. Vehicles are taking 62 days to turn.
