Lane Watch: Weekly Wholesale-Value Declines Stretch to Nine Consecutive Weeks
Like many of us, the Black Book team celebrated the Fourth of July on Tuesday, so its newest installment of Market Insights appeared on Wednesday, giving analysts the chance to compile their data wrapping up June and glimpsing into the first day of the new month.
What Black Book found was all 22 vehicle segments softening in price, leading to an overall value drop of 0.44% and the estimated average weekly sales rate remaining steady at 46%.
“Declines are continuing across all segments with the overall market rate of weekly depreciation slowly increasing each week,” analysts said in the report. “Last week marked the ninth consecutive week of declines. In the auction lanes, the no sales are still abundant with sellers holding firm on floors and the buyers being cautious.”
Looking closer at cars, Black Book said its volume-weighted data showed a 0.42% price decrease for the segment last week, slightly less than the 0.44% decline registered a week earlier.
Analysts indicated prices in the subcompact car segment dropped the most sliding by 0.68% and marking the ninth consecutive week of declines. The average weekly value drop for those gas-sippers during that stretch has been 0.52%.
“Sporty car has been up and down in recent weeks with small changes, but last week the segment declined 0.18%,” Black Book said. “Pre-COVID, the sporty car segment began to report declines around the beginning of June.”
And when looking at cars by age, Black Book noticed values for 0- to 2-year-olds models dropping by 0.32% and prices for 8- to 16-year-old cars declining by 0.37%.