The price of used sports cars jumped more than 1 percent on the wholesale market last week, adding $282.
It was part of another big week of increases in wholesale values of used vehicles, according to BlackBook. The overall market for vehicles between 2- and 8-years old jumped 0.35 percent, carrying over the continued increases in February into the second week of March.
“The gains are continuing, both in the increases vehicle valuations are experiencing and in conversion rates at the auctions,” said the BlackBook market insight release. “Week-over-week increases have now reached levels we have not experienced since the fourth quarter of 2021.”
The price jump for sports cars was the seventh consecutive week for the segment to see gains, with this week’s 1.35 percent being the largest.
“For the first time since November 2021, a car segment increased more than 1 percent in a single week.”BlackBook market insight
“For the first time since November 2021, a car segment increased more than 1 percent in a single week,” BlackBook noted.
Seven of the nine car segments saw increases, including luxury cars, ending 41 weeks of declines.
Truck prices grew by 0.30 percent or $62 last week. Ten of the 13 segments had increases. Compact SUVs and small pickups had 0.52 percent gains.
Sales at wholesale auctions increased to 50 percent after staying at 49 percent the previous three weeks.
“The first week of March started off as expected with sales rates continuing to increase across the country,” BlackBook reported. “Another positive observation from the lanes, improvement in the quality of the vehicles crossing the auction block. This improvement in condition is also contributing to the higher sales rates.”
Retail prices for vehicles 2- to 6-years old inched up in the price index to nearly back to the start of the year. The retail inventory stayed at 0.99 on the index.
Vehicles are still taking 48 days to turn, one day longer than last week and the same as the first week of the year.
Used vehicle retention index rebounds
BlackBook also this week released its used vehicle retention index for February, which showed an end to seven months of declines. The index, which measures the trend in percent retention from original MSRP of a typical 4-year old vehicle in the market, increased 1.9 percent (3.1 points).
“After several months of steep declines in wholesale and used retail prices, it seems that there is an anticipation of increased used retail demand in the next several months.”Alex Yurchenko, Chief Data Science Officer at Black Book
“After several months of steep declines in wholesale and used retail prices, it seems that there is an anticipation of increased used retail demand in the next several months,” said Alex Yurchenko, Chief Data Science Officer at Black Book. “Activity at auctions increased last month as dealers were preparing for the spring market. We saw price increases across all mainstream segments with compact cars and compact crossovers leading the way with the highest appreciation. Now, retail listing prices are still on a decline, but we expect a reversal in the near future as demand for used vehicles strengthens in the short-term.”
Values are 11.5 percent below February 2022. It was 49 percent above March 2020.