The modest springtime appreciation consignors and dealers see annually is already starting to surface, especially when examining some specific vehicles less than 2 years old.
That’s one of the main findings from this week’s Market Insights from Black Book, which is also watching for price shifts that can be attributed to tariffs.
All told, analysts found that overall wholesale prices softened last week by just 0.19%, which was 14 basis points less than what Black Book reported a week earlier.
When looking closer at the data, especially the youngest models flowing down the lanes, Black Book noticed certain high-volume segments, like compact car and compact crossover, recorded modest gains last week, increasing by 0.02% and 0.002%, respectively.
Even more dramatic was the value rise posted by midsize cars less than 2 years old, as Black Book said prices for those units jumped by 0.51%.
“This group didn’t show gains until mid-March,” analysts said about last week’s movement of cars less than 2 years old compared to last year.
Similarly in the truck department, Black Book said the 0- to 2-year-old full-size pickup segment experienced a value increase last week, ticking up by 0.01%, occurring three weeks earlier than the first increase for this segment a year ago.
If dealers want more affordable units for tax season, perhaps they continue to look at the oldest vehicles going to auction. Black Book noticed prices for cars age 8 to 16-years old dropped by 0.64%, while values for trucks in that age range decreased by 0.51%.
One other notable value decline in Black Book’s tracking involved subcompact cars, which dropped another 0.59%. Analysts said subcompact cars have been averaging a weekly price decline of 0.74% during the past eight weeks.
Black Book added last week’s auction conversion rate came in at 58%.
“We saw total auction inventory decline last week, just under what was seen toward the end of January,” Black Book said in the report. “One contributing factor was the lower amount of Canadian export vehicles in the auction lanes. There is still a lot of uncertainty with the possibility of higher tariffs.
“As always, our team of analysts are focused on the keeping their eyes on the market for developing trends and gathering insight,” Black Book went on to say.
