Wholesale prices continued their decline last week through the month of January, though declines in the overall market are at a 0.21% decline, higher than historical 0.44% drops, according to Black Book’s Market Insights Report.
Volume-weighted, overall car and truck segments both experienced continued softening in values last week, with the overall rate of decline decreasing compared to recent weeks, the report found.
The car segment, overall, saw a 0.16% decline, while the historical average has been a 0.49% decline, according to the report. The sub-compact and compact car segments reversed direction after 21 weeks of declines this past week, with both segments experiencing week-over-week gains in value.
The volume of off-lease 2018 model year near luxury and luxury car models has been increasing in recent weeks and this is reflected in their recent price trend, a decline of 0.42% and 0.38%, respectively. Also, sporty cars are starting to show signs of the spring market on the horizon with their weekly depreciation rate slowing from 0.29% a few weeks ago to 0.08% this past week, according to the report.
Meanwhile, the truck and SUV segment saw a 0.24% decline, while the historical average was a 0.39% decline. Full-size SUVs increased for a third week in a row at 0.05%, due to low new inventory continuing to drive the demand for used units that are also in short supply.
Full-size trucks had fifteen weeks of softening values, but this past week they stabilized. Despite the consecutive weeks of declines, the full-size truck segment finished out 2020 with values up 8.7%.
Minivans took the top spot for the largest declining truck segment for multiple weeks during the fourth quarter of 2020, but 2021 is bringing on a new trend. The past two weeks the minivan segment has seen weekly depreciations below 0.30%.