Wholesale used vehicle prices dropped for an eighth straight week.
The overall wholesale market fell another 0.42 percent in the past week, according to BlackBook’s weekly market insights. It’s the largest percentage of drop since the market turned at the start of May.
“With days to turn continuing to inch higher, auction sales rates are trending lower as dealers are being cautious about their purchases,” said BlackBook. “We have yet to see retail listing prices follow the same path as wholesale, but typically retail lags wholesale by six-to-eight weeks, so the expectation is the retail market will begin to see prices declining soon as well.”
Wholesale prices were down in 21 of the 22 vehicle segments reported by BlackBook. With a modest increase of 0.05 percent, $12, sports cars were the lone category to see growth.
The overall car market dropped 0.44 percent or $78. Prestige luxury cars were down $233 or 0.57 percent. Premium sports cars, full-size cars and luxury cars also fell more than $100 in value.
Trucks and SUVs collectively dropped by an average of $97 or 0.41 percent, with all 13 categories falling. Five segments — midsize crossover SUVs, compact luxury crossover SUVs, full-size luxury crossover SUVs and full-size vans — had more than triple-digit drops. Full-size luxury crossover SUVs fell a whopping $316 or 0.68 percent.
The auction sales rate fell to 46 percent last week from 47 percent.
“Lower conversion rates and more no-sales in the past few weeks seems to be the theme for the month of June,” BlackBook reported. “All the truck segments have declined in the last two weeks while most car segments also saw a decline last week, with the exception of sports cars. The larger wholesale sellers continue to do well, but the smaller sellers are struggling to move vehicles at the auction.”
Retail prices for vehicles 2- to 6-years old stayed at 1.01 on the used retail price index. Inventory dropped slightly back to 1.01.
Vehicles are still taking 50 days to turn.
