Wholesale used vehicle prices took another big drop this past week.
After the pace of declines slowed last week, the market suffered a 1.4 percent fall at the start of September, according to the BlackBook Weekly Market Insights.
“The market continues to depreciate at an accelerated rate, despite increased auction activity last week,” BlackBook reported. “Dealers continue to speculate on the potential UAW strike that could cost the industry billions and increase demand for used vehicles.”
According to the “New York Times”, the UAW has voted to strike if a deal is not reached with Ford, General Motors and Stellantis by Sept. 14. The UAW is asking for double-digit pay increases and protections against plant closures among other demands.
Of the 22 categories followed by BlackBook, only premium sports cars saw a price increase — 0.7 percent or $377.
“The increases continue to be driven by the strength of the prior generation Chevrolet Corvette by collectors,” BlackBook reported.
In all, the car segments lost 1.44 percent or $238. Mid-size cars fell $294 or 2.1 percent. Most other car categories were down more than 1 percent, falling in price between $152 and $523.
The 13 truck and SUV divisions fell on average 1.38 percent or $302. Full-size luxury crossover SUVs fell $876 or 1.99 percent. All the other truck and SUVs dropped more than 1 percent and between $201 and $442 in price.
The sales rate at auction was at 49 percent.
“Between the speculation of a potential strike and a various recent natural disasters around the country, it is surprising that the market is taking such a large downturn; However, industry conversations are viewing this as prices working toward ‘normalization’ and not due to the ‘sky’s falling,’” BlackBook noted.
The BlackBook retail price index is at 0.99, just below the start of the year. Inventory is at 1.01. Vehicles are taking 49 days to turn.