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Wholesale used vehicle prices posts positive gains

February 16, 2023

Wholesale used car prices entered territory not seen since last summer this past week.

After recording the lowest amount of depreciation in eight months last week, the market took another step forward.

The overall market moved back into positive territory last week for the first time since the middle of June of last year.
BlackBook weekly market insight

“The overall market moved back into positive territory last week for the first time since the middle of June of last year,” said latest BlackBook weekly market insight

According to the BlackBook, wholesale prices for vehicles 2- to 8-years old increased 0.03 percent.

Four of the nine car segments — compact car, mid-size car, full-size car and sports cars — gained in values. Sports cars had a $126 gain, 0.61 percent.

“The market has not seen this level of increase since mid-June 2022,” said BlackBook release.

Trucks gained 0.04 percent overall, $9. Five truck segments — compact crossover SUV, mid-size crossover SUV, full-size crossover SUV, full-size crossover luxury SUV and small pickup — had increases. Small pickups grew in value by $118, 0.53 percent.

Two- to 6-year-old vehicles on Blackbook’s wholesale weekly price index are just slightly below prices at the start of the year.

Sales rates at auction increased for a second straight week.

“February has started off fast, for the second week in a row now, we’ve seen auction sales-rate increase across the country,” the release said. “With this and some increases in wholesale prices over the past 2 weeks. February is setting up to be a strong month, if these trends continue for the rest of the month.”

Retail prices are just slightly down from the first week of the year.

Retail inventory remains decreased two points to 0.97 on the index. Vehicles are still taking 50 days to turn, the same as the previous week. It is four days longer than the first week of the year.

In the consumer price index released Tuesday by the Bureau of Labor Statistics, the index used vehicles fell 1.9 percent in January. The segment has fallen 11.6 percent in the past 12 months.

The entire index increased by 0.5 percent in January.

NIADA Author

The National Independent Automobile Dealers Association (NIADA) is among the nation’s largest trade associations, representing the used motor vehicle industry comprised of some 40,000 licensed used car dealers. Since 1946, NIADA has represented the voice and interests of used car dealers at the federal level in Washington D.C. Coupled with its state association network across the country, NIADA’s grass-roots framework provides a dual layer of advocacy unmatched in the used motor vehicle industry. For 75 years, NIADA has engineered programs and leveraged technology to fulfill its mission to advance, educate and promote the independent used car dealer. NIADA members subscribe to a strict Code of Ethics of duty, honor and integrity, and believe in the advancement of small business in support of the free-market system. More information about NIADA, visit www.niada.com.