Used car wholesale and retail prices dipped in the final week of the year.
According to Black Book’s weekly market insight, wholesale prices for the used car market were down 0.79 percent in the final week of the year. Car segments were down 0.77 or $121, and truck and SUV 0.80 percent or $171.
“The year closed out with another week of above average weekly depreciation. With depreciation exceeding the typical yearly rate, values are still well above pre-COVID levels,” said the Black Book insight report.
The wholesale weekly price index has dropped from 1.51 points in December 2021 to 0.87 at the closed of 2022. The figures are based on wholesale prices of 2- to 6-year-old vehicles indexed to the first week of the year. It was the first year since 2019 for the index to finish lower the start of the year.
The retail index was also down at 0.91 at the end of the December. The index closed 2021 at 1.35.
The retail inventory stayed consistent for a third straight week and used retail is taking 46 days to turn.
While this report shows a much needed downtick in used car prices, we cannot assume that will hold steady in the weeks to come.
Jeremy Beck, NIADA Vice President
The estimated average weekly sales rate increased to 46 percent.
“We continue to see trends that are inconsistent with norms we’ve seen over the past decade, since the Great Recession,” said NIADA Vice President Jeremy Beck. “This should tell all of our dealer members they must remain diligent in inventory acquisition and marketing strategies on aged units to prevent unnecessary losses. The market is just too unpredictable right now to not be diligent.
“While this report shows a much needed downtick in used car prices, we cannot assume that will hold steady in the weeks to come. NIADA continues to provide educational and consulting opportunities to help dealers navigate this unpredictable time in our industry.”
