🚗July Market Insights: Wholesale Inventory on the Rise

Wholesale Price Changes by Segment 

Car segment values declined throughout July, with most segments experiencing consistent depreciation. While the overall decline slowed in the final week, several segments continued to drop sharply. Notable trends include a significant decrease in the 8-to-16-year-old car category, a brief rebound in midsize cars, and sustained weakness in the full-size car segment.

Wholesale Inventory

Used Retail Listing

Used car inventory continued to rise throughout July. The average number of days it took to sell a used car increased steadily, from 48 days at the beginning of the month to approximately 53 days by the end. This indicates a growing supply of used vehicles and potentially slower sales rates.

Black Book’s Used Vehicle Retention Index Decreased In June

“In June, the pace of depreciation increased as wholesale values across all segments experienced larger declines than typical seasonality,” stated Laura Wehunt, Vice President of Analytics at Black Book. “These larger-than-typical declines caused the Black Book Retention Index to fall by 1.4%, with all individual reporting segments also showing a decline in their Index readings. Throughout the month, auction conversion rates remained stable in the mid-50-percent range, but days to turn in the retail market increased each week, ending the month at 45 days compared to 38 days at the start.”