For a second straight week price increases for wholesale used vehicles slowed.
The overall market increased 0.31 percent in the past week, according to BlackBook’s weekly insight. This week followed gains of 0.43 and 0.51 percent in the previous two weeks.
“Values continued to increase last week, but the rate of gain is slowing,” said the BlackBook report. “In addition, auction conversion rates have been weakening with sellers holding very firm on their floors. Auctioneers are having to work a little harder to get bidders in the game, with many lanes having less bidders tuning into their sale.”
Used cars gained 0.41 percent or $64, with eight of the nine car segments increasing. Sports cars had the largest increase, 0.88 percent or $194. Full-size cars also increased by $109 or 0.62 percent.
Trucks and SUVs were up 0.27 percent or $57, with 11 of the 13 categories gaining in price. Small pickups had the largest increase of $166, 0.72 percent. Minivans gained $135, 0.78 percent. Compact and full-size vans were the only classes to see a drop in price.
Sales at auction dropped slightly at 51 percent.
“Auction conversion rates dropped slightly for the third straight week and with prices reporting a slowing in the rate of increase, it leaves us wondering if the spring market is starting to come to an end,” BlackBook said. “The general mood from those we’ve talked to is that we still have some weeks of increases ahead of us.
“We have noticed the inventory at various OEM open and closed sales has been down the last few weeks, but inventory in the dealer lanes is increasing.”
Retail prices for vehicles 2- to 6-years old stayed at 1.02 on the used retail price index, the high point for the year. The retail inventory dropped to 0.94 on the index. Vehicles are taking 56 days to turn, an increase of one day from last week.
