Wholesale depreciation accelerated modestly last week, driven primarily by weakness across truck and utility segments. On a volume-weighted basis, Car values declined -0.13%, while Trucks/SUVs fell -0.36%, as all thirteen Truck segments posted declines for the first time in twenty-one weeks, ending a prolonged stretch of broad-based strength. Even with values trending lower, auction conversion rates improved to 59%, indicating that vehicles priced in line with market expectations continued to attract solid buyer participation.
Car Segments
- On a volume-weighted basis, the overall Car segment decreased -0.13%. For reference, in the previous week, cars decreased -0.03%.
- The 0-to-2-year-old Car segments were down -0.24% and 8-to-16-year-old Cars decreased -0.01%.
- Value gains were more widespread among 2-to-8-year-old Car segments last week, with three of nine segments increasing in value, compared with two gains among 0-to-2-year-old vehicles and five gains among 8-to-16-year-old models.
- Despite broader market softening in recent weeks, the Near Luxury Car segment continued to outperform, posting gains for five consecutive weeks with an average weekly increase of +0.15%.
- Despite broader weakness across most segments, 0-to-2-year-old Compact Cars continued to outperform, posting a sixteenth consecutive weekly gain with values increasing +0.12% last week.
Truck / SUV Segment
- The volume-weighted, overall Truck segment decreased -0.36% compared to the decrease seen the prior week of -0.15%.
- The 0-to-2-year-old models saw an average decrease of -0.36% and the 8-to-16-year-old models experienced an average decrease of -0.33%.
- Value gains were absent across truck segments last week, as all thirteen 2-to-8-year-old segments declined, joined by every segment in both the 0-to-2-year-old and 8-to-16-year-old age categories.
- The 0-to-2-year-old Mid-Size Crossover/SUV segment continued to see accelerating depreciation, declining -0.53% last week – the segment’s steepest single-week drop since late December of last year.
- The 0-to-2-year-old Small Pickup segment declined -0.20% last week, marking its first weekly decrease in seventeen weeks. By comparison, 2-to-8-year-old models fell -0.15%, a steeper decline than the prior week’s -0.07%, while 8-to-16-year-old models were down -0.24%.
