Thanksgiving turned out to be softer for all involved as Black Book noticed weaker trends on both the wholesale and retail fronts.
The observations stemmed from a holiday timeframe typically filled with some of the largest gatherings on the calendar, but derailed this year because of the pandemic.
As Black Book analysts explained it in their newest update, “With COVID-19 cases spiking around the country and last week being a holiday, many dealers saw soft retail demand.
“Due to the Thanksgiving holiday, it was a short week on the lanes,” Black Book continued in its latest COVID-19 Market Insights. “This coupled with weaker retail demand led to a higher no-sale rate.
“However, the vehicles with low miles and good condition continue to garner the most attention, but the ‘edgier’ units with higher miles and rougher condition reports aren’t seeing the same attention they did over the summer,” analysts continued.
“Dealers are saying these units that require extensive reconditioning aren’t worth the risk of overspending and taking too long to turn,” Black Book went on to say.
Perhaps a source of higher-quality inventory could be the off-rental channel. Black Book delved into the predicament facing rental-car companies such as Hertz, which already has filed for bankruptcy and the day before Thanksgiving announced the potential sale of Donlen.
“It’s looking like the holiday season won’t involve as much travel for many families this year, and this is bad news for rental companies that typically see a spike in demand to finish the year,” Black Book said. “This will lead to additional rental units coming to the used market before the end of the year.”
After discussing those overall trends, Black Book dug into how wholesale values moved as auctions, dealers and their customers likely enjoyed some turkey and trimmings.
Beginning with the car segment, Black Book indicated volume-weighted data showed overall car segment values decreased 0.48% over the last week. That’s above...