Over the last several weeks of 2020, wholesale sold volume decreased as dealers started to pull back on purchasing, according to Black Book.
Black Book reported a significant drop in sold volume (both month-over-month, and year-over-year) in wholesale channels from September to November of 2020.
There are several factors that contributed to this drop. For example, the no-sale rate increased substantially during the Fall season by about 15%, as many remarketers were not willing to adjust price floors.
There was also a year-over-year decrease in available units:
- Rental companies held back some units to cover hurricane related rentals in September and October.
- Lower volume was sold in November as purchases of new models are being pushed into 2021.
- Repossessions are slow to hit the market, as the process has slowed down significantly compared to pre-COVID days.
- Dealers are holding on to more trade-ins and lease returns compared to previous years.
However, the drops in volume were not uniform across all auctions and platforms, Black Book said.