Dealerships began November coming off a month of softer retail demand, but Black Book said most dealers are reporting it as typical seasonal softening.
Black Book also mentioned that inventory retail inventory levels currently sit about 12% lower than the start of the year.
With prices cooling like the weather, are dealers stocking up on units even if demand is in the downward part of the sales cycle?
“Volume is starting to grow, and remarketers are adjusting their floors on certain models and trims that are experiencing increasing supply,” Black Book said in this week’s COVID-19 Market Insights.
“The big buyers (CarMax, Carvana, etc.) took a backseat to their buying frenzy for the last few weeks, but this past week, we saw them get back in the game. As prices continue to trend down, they are taking the opportunity to secure more inventory,” Black Book continued.
Black Book indicated overall wholesale values dropped for the eighth week in a row as declines for both cars and trucks topped readings analysts spotted a week earlier.
Beginning with the car space, Black Book’s volume-weighted data showed overall car segment values dropped by 0.78% over the past week, a slight uptick in depreciation from the 0.74% decrease analysts recorded during the prior week.
Values for compact cars slid the most, dropping by 1.14%, as midsize car values decreased by a similar rate (down 1.11%).
Also of note with many areas of the U.S. sustaining their first snowfall of the season, analysts watched values for sporty cars sink 0.72% this past week, coming off a timeframe when the decline was just 0.09%.
In the truck world, Black Book determined via its volume-weighted information that overall values in the truck segment (including pickups, SUVs and vans) dropped by 0.50% last week, exceeding the depreciation decline registered a week earlier of 0.39%.
“As with the car segments, the mainstream, fuel-efficient segments are losing value the fastest,” analysts said while pointing to subcompact and compact crossovers both sliding by more than 0.85%.
“Minivans are also experiencing consistent week-over-week declines that are typical for this time of year as rental companies’ de-fleet and retail demand softens,” analysts added about those particular units that slipped in value by 0.60%.