Evaluating the Resilience of Wholesale Markets

UAW Strike's Impact on Wholesale Market Pricing Trends

In the middle of the ongoing UAW strike, the wholesale market is showing signs of stability, particularly in pricing trends. Black Book Market Insights reports that while prices have settled, buyer interest remains strong at auctions, resulting in increased conversion rates week after week.

Car Segments

On a volume-weighted basis, the overall Car segment saw a modest decrease of -0.15%. This is an improvement from the previous week, where car prices declined by -0.29%.

Specifically, the 0-to-2-year-old Car segments experienced a slight decrease of -0.03%, while 8-to-16-year-old Cars declined by -0.09%.

Out of the nine Car segments assessed, seven of them experienced price decreases.

Notably, the Sub-Compact (+0.04%) and Compact (+0.02%) Car segments showed an increase in prices last week, recovering from declines in the prior week, which were -0.48% and -0.35%, respectively.

The Compact Car segment, in particular, had been consistently declining for the previous eighteen weeks, with an average weekly change of -0.94%.

Prestige Luxury Car saw the most significant decline last week, with prices dropping by -0.44%, compared to the prior week's decline of -0.25%.

Truck / SUV Segments

In the overall Truck segment, prices decreased by -0.05%, a notably smaller depreciation compared to the prior week, which saw a -0.19% decline.

Prices of 0-to-2-year-old models remained stable with no change (0.00%) on average last week, while 8-to-16-year-old models declined by -0.25%.

Three out of the thirteen Truck segments experienced price increases last week. Small Pickup reported the largest increase at +0.26%, followed by Mid-Size Crossover (+0.19%) and Compact Crossover (+0.09%). The Mid-Size Crossover segment had also seen an increase of +0.08% the week prior.

Compact Van witnessed the most substantial decline, with prices dropping by -1.28%. This segment has been on a declining trend for twenty-five consecutive weeks, with an average weekly decline of -0.62%.

Despite the ongoing UAW strike, the wholesale market is demonstrating a level of stability in pricing trends. While certain Car segments are showing signs of improvement, Truck and SUV segments also have their share of fluctuations. It's important for industry stakeholders to closely monitor these trends as they continue to impact the automotive market.