Be it a car or truck, Black Book saw both general vehicle segments depreciating at almost the same rate as auctions and dealers celebrated Thanksgiving.
According to this week’s Black Book Market Insights report, editors determined sporty cars and compact vans saw the most depreciation out of both segments, dropping by 0.82 percent and 1.31 percent, respectively.
“Normal seasonal depreciation continues for sporty cars. Commercial compact vans are depreciating faster than the full-size vans,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
Looking at volume-weighted data, Black Book indicated overall car segment values decreased by 0.48 percent last week, lower than the average weekly decrease of 0.54 percent in values recorded during the previous four weeks.
Volume-weighted truck segment information showed that values for pickups, SUVs and vans softened by 0.49 percent last week. That figure is higher than the average weekly decrease of 0.36 percent in values editors posted during the previous four weeks.
Likely not because of any drowsiness triggered by that Thanksgiving turkey, Black Book’s representative in the lanes uncovered reasons why dealers aren’t moving as much used metal as they would like, which is impacting the lanes at auction.
The first instance of this trend surfaced in Tennessee where Black Book’s representative shared, “Retail is slow on both new and used in our area, causing our wholesale market to sputter after a pretty good fall run.”
In Pennsylvania, a similar story unfolded as the lane watcher relayed, “The number of vehicles sold was noticeably lower today. Dealers commented that we should expect this through the end of the year.”
And in the Northwest, Black Book’s auction visitor mentioned a specific reason why dealers are hesitant to load up on used inventory.
“A used car manager from a new-car store stated that Incentives are really starting to put a strain on his late-model used market,” the lane watcher stationed in Washington said.
Down the West Coast, the seasonal trends of the wholesale market surfaced.
“A national remarketer commented that the end of October seemed to signal that we are pushing toward the seasonal normalcy in the market after a really good late summer/early fall run,” a Black Book resprenstative in California reported.
Up in Michigan, where signs of winter are clear, a lane watcher said, “Four-wheel-drive trucks are still selling well. This is a typical market trend here during late fall when hunting season kicks in and snow and ice lurks.”