Hey there, auto enthusiasts and market watchers! We’ve got some juicy updates from the auto market for the week ending June 1, 2024. Buckle up, because there are some surprising trends and insights you won’t want to miss.
Auto Market Update Week Ending June 01, 2024 (PDF)
Weekly Depreciation Rates: What’s Happening?
So, what’s the buzz this week? Well, depreciation rates took a nosedive, marking the steepest single-week decline since mid-January. Sounds dramatic, right? Let’s break it down:
Car Segments
- Overall Decline: On a volume-weighted basis, car segments dropped by -0.34%. The previous week’s decline was just -0.06%, so this is quite a jump.
- Age Matters: Cars aged 0-2 years fell by -0.17%, while the older 8-16 year cars saw a steeper drop of -0.37%.
- Sub-Compact Cars: This segment had a tough week, plummeting -0.77%, continuing its eight-week losing streak.
- Sporty and Premium Sporty Cars: Bucking the trend, these segments showed minimal increases of +0.01% and +0.03%, respectively. Sporty Cars have been on a roll, gaining +0.26% weekly for ten consecutive weeks.
Truck and SUV Segments
- Overall Decline: Trucks and SUVs saw a -0.55% decrease, a significant jump from the previous week’s -0.19%.
- By Age: Newer models (0-2 years) dipped by -0.37%, and older models (8-16 years) by -0.33%.
- Compact Crossovers: This segment experienced the largest single-week drop since mid-January, depreciating by -0.78%.
- Full-Size Pickups: Also took a hit, with a -0.57% drop, marking the biggest decline since January’s second week.
Retail Insights: What’s Moving and What’s Not
Retail markets always add an extra layer of complexity. Here’s a snapshot:
- Active Listing Volume Index: This index tracks inventory at independent and franchised dealerships, and it’s showing a notable decrease.
- Wholesale Trends: Trucks are on a consistent depreciation trend throughout May, with all segments reporting declines last week. However, the car segments are more varied, with a couple showing positive movement.
Unique Market Dynamics
Ever wonder how holidays and month-end affect the auto market? Memorial Day and the end of the month often shake things up, influencing purchasing patterns. This week, those dynamics were in full play.
- Memorial Day Impact: Typically, we see a spike in purchases around holidays, but this week’s data suggests a different story. Buyers might be holding back, anticipating better deals or reacting to broader economic signals.
- Month-End Movements: Dealers often push for higher sales at the month’s end to hit quotas, which can lead to fluctuations in pricing and inventory levels.
Auction Insights
Auction sales rates offer another lens to view market health. The average auction sales rate this week was 53%, down 2% from the previous week. This dip could indicate growing caution among buyers and sellers, reflecting broader market uncertainties.
Keeping an Eye on Trends
Our team of analysts is constantly scanning the horizon for emerging trends. This week’s numbers paint a picture of a market in flux, with significant variances across segments and age groups. It’s a reminder that the auto market is anything but static.
Wrapping It Up
So, what does all this mean for you? If you’re in the market for a car, truck, or SUV, it’s crucial to stay informed and agile. Prices are shifting, and knowing where the trends are headed can help you make smarter buying or selling decisions.
What do you think about these latest trends? Are you surprised by the depreciation rates or the stability in sporty car segments?
