Depreciation slows on wholesale used vehicle market

With the price increases in compact cars, premium sports cars, full-size crossover SUVs and small pickups, the depreciation in the wholesale vehicle market slowed its lowest level of the year this week.

The overall market fell 0.26 percent after dropping 0.33 percent the previous week, according to the BlackBook weekly Market Insights.

“The general wholesale market is exhibiting indications of an early spring, with the depreciation rate easing sooner than the pre-pandemic norm for this season,” BlackBook reported. “The compact car segment stands out particularly, with vehicles across all age brackets experiencing several successive weeks of value increases.”

Prices for the nine car segments were down 0.18 percent or $25. Near luxury cars fell 0.65 percent or $116. Sub-compact cars declined 0.56 percent or $38.

Compact cars had an increase of 0.08 percent or $8. Premium sports were up 0.01 percent or $3.

Collectively the 13 truck and SUV segments dropped 0.29 percent or $53. Compact luxury crossover SUVs lost $122 or 0.6 percent. Sub-compact crossover and compact crossover SUVS fell 0.7 percent and between $83 and $95.

Full-size crossover SUVs increased by 0.38 percent or $90. Small pickups were also up 0.26 percent or $53.

The auction sales rate stayed at 55 percent.

“The initial week of February maintained the stability of the wholesale market seen at the end of January. There was a modest rise in auction inventory alongside value stabilization within both car and truck categories,” BlackBook noted. “Over the past four weeks, the market has shown gradual improvement, with no significant fluctuations but rather minor price upticks in certain car and truck segments.”

Used retail inventory fell to its lowest point of the year. Retail prices also were at a low point. Vehicles are taking 58 days to turn.

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