Vehicle Market Report for July 2023 saw a decline in wholesale prices.   -  Photo: Work Truck

Vehicle Market Report for July 2023 saw a decline in wholesale prices. 

Photo: Work Truck

In June, wholesale vehicle prices declined every week. Entering July, the declines continued across all vehicle segments, making it the ninth week of declines.

In mid-July, sellers initiated adaptations to their pricing thresholds, and this recalibration is evident in the wholesale price trajectory.

The previous week saw the most substantial weekly decline since mid-January, according to Black Book.

Preceding the July 4th holiday, the market had been on a downward trajectory, although sales rates remained sluggish due to cautious buyer behavior and sellers holding firm on their pricing floors.

As we entered the initial full week after the holiday, sellers became more open to negotiations.

However, buyers in the past week remained reluctant to embrace the lowered prices.

Dealership inventories are expanding, and the time it takes to sell inventory is also increasing, prompting dealers only to consider purchases that offer exceptional value.

As for the last week in July, stabilization occurred. This observation holds particularly true for certain Car segments; notably, Full-Size Cars experienced an almost negligible decline of 0.001%.

In contrast, the Full-Size Trucks segment recorded its most notable weekly drop since December 2022, with a decline of 0.64%.

Truck Wholesale Prices

In the first week of July, the overall Truck segment, measured by volume-weighted data, experienced a decrease of 0.41%, maintaining consistency with the 0.37% decrease observed in the previous week, according to Black Book.

Among the Truck segments, those aged 0-to-2 years saw a slightly smaller decline at -0.40%, while the 8-to-16-year-old segments experienced a decrease of -0.33%.

All 13 Truck segments reported declines in the past week. Compact luxury Crossovers and Compact Vans registered the most significant drops at 0.77% and 0.76%, respectively.

Both of these segments saw an escalation in depreciation compared to the previous week, with Crossovers experiencing a rise of -0.42% and Vans seeing a climb of -0.35%.

In contrast, Full-Size Vans demonstrated the least decline, experiencing a mere drop of -0.17%. This marks the smallest weekly change in this segment since the first week of May.

July Ended in Decline

Ending out July, it saw a decline of 0.41%, less pronounced than the -0.50% drop in the preceding week.

Among the 0-to-2-year-old Truck segments, there was a smaller decline of 0.36% last week, while the 8-to-16-year-old segment experienced a larger drop, depreciating by 0.46%.

All 13 Truck segments experienced a decrease in the previous week. Notably, Compact Luxury Crossovers exhibited the most significant decline, with a 0.85% drop.

This marks the ninth successive week of declines for the Truck segment, with an average weekly change of -0.74%.

In the case of Full-Size Pickups, there has been a continuous decline for eight weeks, culminating in the segment's most substantial single-week drop (-0.64%) since December 2022.

Over the past eight weeks, the segment has averaged a weekly decline of 0.36%.


 

About the author
Hillary Weiss

Hillary Weiss

Senior Editor

Hillary Weiss is a former senior editor at Bobit. She has a decade of digital publishing experience and a passion for all things related to fleets.

View Bio
0 Comments