Automotive Market Update for October 2022(PDF)
- The market keeps declining considering the time of the year.
- Last week, the 8-to-16-year-old cars depreciated by 0.63%, while the 2-to-8-year-old vehicles declined by 0.76%.
- Overall, the car segment decreased 0.89%. For reference, last week cars decreased 1.11%.
- Three segments reported declines more than 1% last week: Compact Car (-1.01%), Near Luxury Car (-1.11%), and Prestige Luxury Car (-1.23%). All three of these segments also had dropped in the previous week, exceeding 1%.
- All thirteen truck segments reported declines.
- Compact and Full-Size Van continue to decline but are reporting the smallest declines across all of the segments.
- General Motors have introduced a new electric car. They have called the Sierra EV Denali and it has up to 400 miles of range and 754 horsepower. 2 more models – the Elevation and the AT4 – are expected before 2025.
This week | Last week | 2017-2019 Average(Same Week) | |
Car segments | -0.89% | -1.11% | -0.57% |
Truck & SUV segments | -0.70% | -0.67% | -0.48% |
Market | -0.76% | -0.82% | -0.52% |
Weekly Wholesale Index
Calendar year 2020 and 2021 ended with used wholesale prices at elevated levels. With economic patterns (including the automotive market) driven by the pandemic, normal seasonal patterns (e.g., 2019 calendar year) in the wholesale market were not observed for most of the last 2 years. We saw a similar picture in 2009, at the end of the Great Recession. Calendar year 2021 did not have typical seasonality patterns as the market had rapid increases in wholesale values for the majority of the year. The Wholesale Weekly Price Index reached the highest point of the year at the end of December, reporting over 1.51 points. Now, in calendar year 2022, the index has been reverted back to the 1.00 mark. Overall wholesale prices have increased over the last several weeks and they now sit just above where the year started.
The graph below looks at trends in wholesale prices of 2-6-year-old vehicles, indexed to the first week of the year. The index is computed keeping the average age of the mix constant to identify market movements.