Market Insights – 8/13/2024
Wholesale Prices, Week Ending August 10th, 2024
The depreciation rate for August is starting higher than pre-pandemic norms, but the overall market is currently depreciating at a much lower rate than at the beginning of July. For instance, the week ending July 12th saw a depreciation rate of -0.60%, whereas last week the market reported -0.32%.
- On a volume-weighted basis, the overall Car segment decreased -0.30%. For reference, in the previous week, cars decreased -0.19%.
- The 0-to-2-year-old Car segments were down -0.24% and 8-to-16-year-old Cars decreased -0.48%.
- All nine of the car segments reported a decline last week.
- Last week, the price of Mid-Size Cars fell by -0.19% after two consecutive weeks of growth. In contrast, the 0-to-2-year-old Mid-Size Car segment continued its upward trend, increasing by +0.14% following a significant +0.68% gain the previous week.
- Last week, the Prestige Luxury Car segment experienced the largest decline, falling by -0.88%. Over the past four weeks, this segment has averaged a weekly depreciation of -0.73%.
- The 0-to-2-year-old Compact Car segment recorded a gain of +0.41%, marking the second consecutive week of increases for this age group.
- The volume-weighted, overall Truck segment decreased -0.33% compared to the decline seen the prior week of -0.38%.
- The 0-to-2-year-old models declined -0.30% on average and the 8-to-16-year-olds decreased by -0.20% on average.
- All thirteen of the Truck segments reported a decline last week.
- Last week, the Minivan segment experienced the smallest decline, dropping just -0.16%. Meanwhile, the newer used Minivan segment (0-to-2 years old) has seen increases in four of the last five weeks, including a gain of +0.06% last week.
- The Small Pickup segment experienced the largest drop in the Truck segments last week, declining by -0.71%. Over the past month, this segment has averaged a weekly depreciation of -0.88%. In comparison, the Full-Size Pickup segment has averaged a -0.40% depreciation per week during the same period.
Weekly Wholesale Price Index
The graph below looks at trends in wholesale prices of 2- to 6-year-old vehicles, indexed to the first week of the year. The index is computed keeping the average age of the mix constant to identify market movements.
Wholesale
The first full week of August, the market exhibited a deceleration in the rate of depreciation compared to the majority of July. Prestige Luxury Cars registered the most substantial drop, with a decrease of 0.88%. Additionally, the Small Pickup Truck segment reported a large decline, dropping -0.71%. Black Book analysts have identified a significant trend: the depreciation of 2024 model year vehicles. The introduction of rebates and substantial dealer incentives for new 2024 model year cars have precipitated a downturn in the auction values of their used counterparts.
The auction conversion rate remains high, with last week’s rate at 58%, a decrease of 1% from the previous week.
As always, our team of analyst are focused on the keeping their eyes on the market for developing trends and gathering insight.
Summer Wholesale Auction Depreciation in Full Swing – Summer Wholesale Auction Depreciation in Full Swing – Summer Wholesale Auction Depreciation in Full Swing
Summer Wholesale Auction Depreciation in Full Swing – Repossession – Wholesale – Remarketing – Credit Union Collections – Credit Union Collectors
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