The drop in wholesale used vehicle prices continued this week.
The overall market dropped 0.37 percent, its largest fall since prices started falling in the second week of May, according to the BlackBook Weekly Market Insights.
“Declines continued throughout the entire market last week, with the exception of one segment, sports cars, which was up only 0.04 percent. The rate of decline is starting to outpace what is typical for this time of year when compared to a pre-COVID market,” BlackBook noted.
The average drop from 2017 to 2017 was 0.28 percent. This past week’s decline followed decreases of 0.31 percent and 0.25 percent in the past two weeks.
Sports cars’ gain of $9 or 0.04 percent was the lone increase among the 22 vehicle segments.
The nine car categories collectively lost $81 in value or 0.45 percent. The luxury car categories lost more than $100 in price. Sub-compact cars dropped 0.89 percent or $83.
All 13 truck and SUV divisions dropped in price. The group lost an average of $80 or 0.34 percent. Five categories had price drops of more than $100. The mid-size luxury crossover SUV and full-size luxury crossover SUV fell more than $200.
The auction conversion rate fell slightly from 49 to 48 percent.
“We saw mixed signals again in the wholesale market,” BlackBook reported. “The conversion rate dropped a point to 48 percent, with some lanes still selling in the 85 to 90 percent range while others struggled to sell 30 to 40 percent. Prices were all over the place, but one thing remains consistent- the low mileage, high condition grade vehicles are still selling for a premium.”
Retail prices for vehicles 2- to 6-years old dipped slightly from last week’s high for the year of 1.03 to 1.01 on the used retail price index.
Vehicles are taking 50 days to turn, an decrease of four days from the previous week.