After months of steady increases, wholesale vehicle prices began to decline, signaling a potential shift in dealer pricing strategies.
Prices Begin to Normalize After Spring Surge
Wholesale Market Trend Reverses. As May began, wholesale used vehicle prices were still riding high. But by the end of the month, the market shifted. According to BlackBook’s Market Insights, prices returned to a more typical depreciation trend.
First Decline in 10 Weeks
In the last two weeks of May, the wholesale market saw slight drops of 0.03% and 0.07%, breaking a 10-week streak of price increases. It marked the first time since late February that both the car and truck segments recorded overall declines.
Mixed Movement Across Segments
Only two car segments—full-size and sports cars—showed gains. Among trucks, just four out of 13 sub-segments increased in value. Leading the gains were full-size crossover SUVs, up 0.66%. Despite the downturn, total auction inventory increased, and auction conversion rates rose 2% compared to the previous week.
Auction Activity Remains Strong
Wholesale Market Trend Reverses. Auction lanes stayed busy, with a conversion rate of 60%, slightly below the previous 63%. This indicates continued buyer interest despite shifting prices.
Car Segment Performance in Late May
By the end of May:
- Car segments overall fell by 0.09% or $15.
- Full-size cars increased by 0.03% or $6.
- Sports cars rose 0.27% or $61.
- Subcompact cars dropped significantly, down 1.27% or $93.
- Truck and SUV Segment Trends
- Truck and SUV prices saw a collective decrease of 0.07% or $15. However:
- Full-size crossover SUVs rose $200 or 0.66%.
- Subcompact luxury crossover SUVs increased by $35 or 0.2%.
- Compact vans declined by $32 or 0.27%.