Lane watch: Wholesale values dip for seventh consecutive week

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LAWRENCEVILLE, Ga. – 

Black Book reported wholesale values declined for the seventh week in a row.

Meanwhile, analysts said in their latest COVID-19 Market Update that after falling two weeks ago, retail prices for used vehicles have stabilized.

According to Black Book’s volume-weighted data, overall car segment values decreased 0.74% over the past week. The drop was larger than a week earlier when analysts pegged it at 0.59%.

“Compact cars have been extremely volatile throughout the pandemic, with a sharp fall initially, then followed by a steady rebound,” analysts said in the newest report.

“However, the values have been consistently falling since the last week of August,” analysts continued about those compact cars, which sustained a value drop of 1.62% to pace all car segments.

Also of note in the car space, Black Book mentioned that after 20 weeks of increases and general stability, the premium sporty car segment showed the first signs of declines, edging 0.09% lower this past week.

Moving on to trucks, Black Book’s volume-weighted information showed overall truck segment values (including pickups, SUVs and vans) softened 0.39% last week. That amount is slightly higher than the previous week’s decrease of 0.35%. 

Analysts pointed out that subcompact crossovers have had an average decline exceeding 1% during the past four weeks with the most recent drop equaling $121.

“Sub-compact crossovers are a newer segment in the market, but consumer preference is still for the larger crossover/SUV options,” Black Book said.

And while full-size trucks remain in short supply on dealer lots — keeping significant depreciation in check — analysts noticed that values for small pickups took a notable dive this past week, sliding by 1.11%.

To close with a brief glance at the retail landscape as mentioned previously, Black Book pointed out that retail prices fell two weeks ago but have since stabilized.

“However, not all segments are performing equally,” analysts said. “As has been the case with the wholesale market, the overall retail market is being skewed by the strength of the full-size trucks and certain SUV segments that continue to garner a higher price.

“Other segments such as compact cars and compact crossovers are seeing larger declines in retail prices due to a larger supply in the market,” they added.



Source : AutoFinanceNews