Led by record declines in prices for full-size trucks and vans, the wholesale used vehicle market experienced a dramatic shift in the past week.
The overall market fell by 1.55 percent, according to BlackBook’s weekly Market Insight. The market experienced a decline of 0.95 percent the previous week.
“With the strike now fully in our rearview mirror, the market is in a state of correction, particularly in the truck and SUV segments, where declines for full-size vans and full-Size trucks, are reporting record level, single-week depreciation,” BlackBook reported. “In general though, a majority of the segments reported declines exceeding 1 percent and some even exceeding 2 and 3 percent.”
All 22 segments followed by BlackBook declined in price. Vans fell by 3.64 percent or $907. Full-size trucks were down 2.79 percent or $744.
“[It’s] the largest single week decline on record for the segment, with Ford F150 and Ram 1500 reporting the largest drops,” BlackBook noted.
Trucks and SUVs fell on average 1.73 percent or $365.
The nine car segments dropped 1.13 percent or $177. Full-size cars declined 1.82 percent or $330.
Sales at auction increased as the prices dropped. The conversion rate rose to 55 percent from 51 percent.
“Sellers are now lowering their floors in anticipation of prices falling even more,” BlackBook said. “Auction conversion rates increased by 3 percent compared to the prior week. All indicators suggest that we are in store for more declining prices in the coming weeks.”
The used retail index fell to its lowest point of the year at 0.95. The used retail inventory is at its high point for the year at 1.05. Vehicles are taking 50 days to turn.