Black Book’s latest COVID-19 Market Update found that while used vehicle values have continued to depreciate since the last week of March, the rate of depreciation has been significantly lower over the last two weeks.
Cars showed the biggest slowing, according to Black Book. After weeks of large week-over-week changes, the weekly change settled down to a typical level for this time of the year. Volume-weighted, overall car segment values decreased by 0.16% this past week, as compared to negative 0.41% the week before (down 0.05% during the same week in 2019).
Trucks and SUVs depreciated 0.62% during the past week, which is an improvement over the previous week of depreciationg 0.76%. Overall, Black Book saw the market depreciating 0.46% this week, compared to 0.63% lower the week before.
With a weakening of the economy, consumer confidence is decreasing, and Black Book expects retail demand to weaken as a result.
Auctions are beginning to show some normalcy with their operations; this is the time of year where they start to see a decline in sales rates due to the Spring market winding down, so the increase in sales rates, after weeks of record lows, are now reaching a point that is typical and somewhat seasonal.
The industry continues to see a rebound in volume in the wholesale marketplace. It appears that there is some stability now, as throughput of wholesale auctions is limited by closure of most physical auctions and reduction of staff by major auction companies.