The market continued to experience significant declines, even after Thanksgiving.  -  Photo: Work Truck

The market continued to experience significant declines, even after Thanksgiving.

Photo: Work Truck

In early November, elevated seasonal depreciation surpassing the usual trends resumed last week for the wholesale vehicle market.

This followed the announcement of tentative agreements between the United Auto Workers (UAW) and major automakers Stellantis, Ford, and General Motors to conclude the six-week strike.

During this period, the Crossover segments experienced significant declines, whereas the Car segments exhibited a steadier decline in line with typical seasonal patterns.

In mid-November, the majority of segments reported declines surpassing 1%, with some even reaching 2% and 3%.

And November’s last week witnessed a persistent trend of substantial weekly declines, with the market intensifying its depreciation post the Thanksgiving holiday.

Despite robust auction attendance, abundant inventory, and strong conversion rates, sellers are adjusting their reserve prices. This adjustment creates a challenge for the market in defining a new "normal," according to Black Book.

The weekly price change of the overall wholesale market.   -  Photo: Black Book

The weekly price change of the overall wholesale market. 

Photo: Black Book

Wholesale Truck Market

The overall Truck segment, calculated on a volume-weighted basis, recorded a decrease of 1.12%, contrasting with the 0.63% depreciation in early November.

This marked the first instance since the week before Labor Day that depreciation has surpassed the 1% threshold.

On average, 0-to-2-year-old models experienced a decline of 0.86%, while 8-to-16-year-old models saw a more substantial decrease of 1.18%. All thirteen Truck segments registered declines in the past week.

Despite being sought-after commodities during the pandemic, Compact and Full-Size Vans have undergone consistent significant declines.

Compact Vans, after experiencing record-setting increases, declined by -2.01% last week, compared to the 1.80% decrease in the previous week.

The Compact Crossover segment also witnessed a notable decline of -1.74% in the recent week, contrasting with the -1.13% decline reported in the week before.

The weekly change of truck and SUV wholesale prices.  -  Photo: Black Book

The weekly change of truck and SUV wholesale prices.

Photo: Black Book

Finishing November, the overall Truck segment, calculated on a volume-weighted basis, recorded a decrease of 1.64%, as opposed to the -1.35% depreciation observed the previous week. On average, 0-to-2-year-old models declined by -1.48%, while 8-to-16-year-olds decreased by an average of -1.51%.

All 13 Truck segments experienced declines last week, with four reporting declines greater than 2%. Full-Size Luxury maintained its trend of significant depreciation, registering a decline of 3.81%, compared to the 3.20% drop in the preceding week.

The Compact Van segment, which had two consecutive weeks of declines exceeding 4%, slowed to 2.67% last week — a still substantial single-week decline. Over the last four weeks, the segment has averaged 3.66% weekly depreciation.

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