Last week saw a continuation of significant weekly declines, with the market accelerating its depreciation following the Thanksgiving holiday, according to the Black Book Market Insights report released Dec. 4. Despite robust auction attendance, ample inventory, and strong conversion rates, sellers are now revising their reserve prices, which is causing the market to grapple with establishing a new “normal.”
Car Segments
- On a volume-weighted basis, the overall Car segment decreased -2.40%. For reference, in the previous week, cars decreased by -1.82%.
- The 0-to-2-year-old Car segments were down -1.82% and 8-to-16-year-old Cars declined -2.44%.
- All nine Car segments decreased last week, with four of those segments reporting declines greater than 2%.
- Compact Car had the largest decline, with a record-breaking single week depreciation of -4.32%. This is on the heels of the previous week’s, also incredibly large depreciation of -3.84%.
The Sporty Car segment is also accelerating the rate of depreciation, declining -3.32% last week, compared with the prior week’s decline of -2.05%.
Premium Sporty (-0.57%) and Sub-Compact (-0.88%) Car were the only Car segments to not have depreciation exceeding 1%.
Truck / SUV Segments
- The volume-weighted, overall Truck segment decreased -1.64% compared to the depreciation seen the prior week of -1.35%.
- The 0-to-2-year-old models declined -1.48% on average and the 8-to-16-year-olds decreased by -1.51% on average.
- All thirteen Truck segments declined last week. Four of the thirteen segments had declines greater than 2%.
- Full-Size Luxury had another week with depreciation exceeding 3% with a decline of -3.81%, compared with the -3.20% drop the previous week.
- The Compact Van segment had two consecutive weeks of declines exceeding 4%, but last week, it slowed down to -2.67%, still a large single week decline. The segment has now averaged -3.66% depreciation per week over the last four weeks.