Wholesale used vehicle prices entered territory not seen in more than a year this week.
The overall market for vehicles between 2- and 8-years old increased 0.44 percent in the past week, according to the newest market insight from BlackBook. The increase carried over gains from February.
“The market reported the largest single week increase in quite a while last week. The Last time we had a similar gain in the market was November 2021.”BlackBook Weekly Market Insight
“The market reported the largest single week increase in quite a while last week. The last time we had a similar gain in the market was November 2021,” said the BlackBook release. “Activity at the auctions continues to be abundant with no-sales on vehicles, not from a lack of bidding, but instead due to sellers holding firm to their floors.”
Sub-compact car prices jumped more than 1 percent last week, increasing by $87.
“This is the first time this segment has had more than a 1 percent increase in a single week since May 2021,” BlackBook reported.
Seven of the nine car segments had gains — three increasing by more than 0.5 percent. Full-size cars added $135.
Prestige luxury cars and premium sports cars were the only classes to see a drop in prices.
Trucks and SUVs saw a gain of 0.43 percent or $91 in the last week. Compact crossover SUVs had the largest increase of 0.92 percent, adding $140.Of the 13 classes, only compact vans and full-size vans decreased.
Sales at wholesale auctions increased to 52 percent from 50 percent.
“The market continues to heat up with values increasing each week at levels well above what is typical for a normal spring/tax season market. Some segments are now reporting single week increases that are reminiscent of the market during 2021. Conversion rates have not returned to the same level yet, but it has not been for a lack of interest from buyers,” BlackBook reported.
Retail prices for vehicles 2- to 6-years old inched back where they began the year on the used retail price index. The retail inventory stayed at 0.99 on the index.
Vehicles are taking 51 days to turn, three days longer than last week.