December started with another big downturn in wholesale used vehicle prices.
The market dropped 1.86 percent to open the final month of the year, according to BlackBook’s weekly Market Insights.
“Last week saw a continuation of significant weekly declines, with the market accelerating its depreciation following the Thanksgiving holiday,” BlackBook reported. “Despite robust auction attendance, ample inventory, and strong conversion rates, sellers are now revising their reserve prices, which is causing the market to grapple with establishing a new ‘normal.’”
Compact car prices fell 4.32 percent, $482.
“Compact car had the largest decline, with a record-breaking single week depreciation of 4.32 percent. This is on the heels of the previous week’s, also incredibly large depreciation of 3.84 percent,” BlackBook noted.
Sports cars were also dropped more than 3 percent, losing $717.
The car market fell collectively 2.4 percent or $360.
The 13 truck and SUV categories experienced a 1.64 percent decline, $330.
Full-size luxury crossover SUVs dropped $1,536 or 3.81 percent. Full-size vans were down 2.97 percent or $682.
The action at auction picked up slightly last week with the price decline. The conversion rate was 54 percent.
“We saw a small uptick in auction conversion rates, with the wholesale market so volatile, sellers are willing to take less or lose money to avoid a larger loss down the road,” BlackBook reported.
The used retail index dropped to 0.94, its lowest point for the year. The retail inventory index remained at 1.02. Vehicles are taking 56 days to turn.
