Used Market Update: January 8, 2020
After a 2% decline the week ending Dec. 27, 2020, wholesale auction prices bounced back during the week ending Jan. 3, 2021. During this period prices increased by an average of 1.6%, which was the biggest week-over-week increase recorded since 1.3% increase for the week ending Dec. 6. Wholesale prices are now 22% higher than their trough in April 2020, and 4% above their level at the beginning of March 2020.
Weekly Wholesale Auction Price Index (Mar 1 = 100)
Wholesale prices for mainstream segments increased an average of 1.9% the week ending Jan. 3 when compared with the prior week. Prices on the mainstream side were up across the board. In general, mass market passenger car segment prices outperformed their truck and SUV counterparts. Mass market prices increased from 0.3% (large SUV) to 4% (midsize van). On the premium side of the market, segment prices increased by an average of 1.1%, though results were slightly mixed. While most premium segment prices increased, midsize premium car prices were flat and compact premium SUV prices fell 1%. Remaining premium segment prices increased from 0.4% (compact premium car) to 4% (large premium car).
Wholesale Auction Follows Typical Seasonal Pattern
Wholesale auction sales of vehicles up to 8 years old for the week ending Jan. 3 reached approximately 47,000 units, equaling the total of the previous week. Last week’s result falls right in line with what we’ve seen in the past, where sales during the final two weeks of the year are slower due to holiday slowdowns.