Thursday, 03 December 2020 18:09

COVID-19, Thanksgiving Combine for Softening Trends in Wholesale, Retail Used Auto Sales

Written by Auto Remarketing Staff


...the 0.31% depreciation reading analysts spotted a week earlier since many sellers held firm to floors in the auction lanes.


“Fuel prices continue to be at low levels and that coupled with the change in consumer preferences away from cars is taking its toll on the subcompact car segment,” Black Book said while noting values for these particular units now have dropped for 14 weeks in a row. Analysts computed the average weekly decline at 0.71%. 


Also of note among cars, the value behavior of luxury units continues to catch Black Book’s attention.


“The luxury segments started to see increases in weekly depreciation rates two weeks, ago and the trend continued this past week,” analysts said. “Some of the largest luxury sellers held firm to floors longer than the mainstream sellers.


“This strategy led to higher no-sale rates, but values stayed stronger longer than is typical for the time of year,” Black Book continued. “With floors falling that trend is now changing. Look for this to continue as supply from these sellers has increased after weeks of lackluster sales rates.”


Moving on to trucks, Black Book reported its volume-weighted information showed overall truck segment values---including pickups, SUVs and vans---declined 0.38% from the previous week. That reading is a slight increase in depreciation compared to the previous week’s drop of 0.35%. 


Just like their car brethren, Black Book indicated values in the fuel-efficient subcompact crossover segment continues to decline.


Over the previous week, these units led all trucks with a drop of 0.88%. And like in the car space, these smallest crossovers have seen...