Wholesale used vehicle prices are falling at a pace not seen since before the pandemic, a shift dealers should factor into their buying decisions heading into auction season. According to Black Book’s latest market analysis, wholesale values dropped 0.52% last week, more than double the 0.21% average decline recorded during the same week from 2017 to 2019, and slightly steeper than the prior week’s 0.49% drop.
The decline was not uniform across segments. Volume-weighted car values fell 0.35% overall, while midsize cars under two years old dropped 0.86% — their steepest weekly decline since December. Compact cars under two years old bucked the trend, gaining 0.26%, their first increase since May. Truck values fell 0.58% overall, with compact crossovers and SUVs down 0.80% for a 12th consecutive week of declines, and minivans between two and eight years old down 0.95%.
Auction conversion rates rose to 59%, up two percentage points from the previous week, indicating that increased activity did not translate into stronger pricing. Black Book noted that pricing differences are increasingly driven by a vehicle’s condition and retail appeal rather than age or mileage alone, as buyers grow more selective in a normalizing market.
