November 2024 Auto Market Update – Insights from November 12th, 2024
This November, wholesale prices in the automotive market have shown stability, with transaction rates beginning to balance. However, a sharper depreciation was noted in the car segment, particularly in budget-friendly categories like compact and full-size cars. Meanwhile, truck and SUV segments saw a gentler decline. As we approach the end of the year, the market is watching for signs of stabilization or further depreciation due to fluctuating demand and inventory adjustments.
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1. Quick Market Stats
| Market Segment | This Week (%) | Last Week (%) | 2017–2019 Avg (Same Week) (%) |
|---|---|---|---|
| Car Segments | -0.38% | -0.52% | -0.65% |
| Truck & SUV Segments | -0.60% | -0.46% | -0.62% |
| Overall Market | -0.54% | -0.48% | -0.63% |
2. Car Segment Analysis
On a volume-weighted basis, car segments collectively declined by -0.38% this week, a slower rate than the -0.52% drop observed previously. Here’s a closer look:
- Luxury and Full-Size Cars: Notably affected, with Luxury Cars declining by -0.74% and Full-Size Cars seeing a -0.52% drop.
- Near Luxury and Premium Sporty Car Segments: Showed some resilience, with only minor declines.
3. Truck & SUV Segment Analysis
The truck and SUV segments faced a volume-weighted decrease of -0.60% this week. Here’s a breakdown:
- Full Decline: Any of the segments recorded even a modest increase.
- Mid-Size and Full-Size SUV Segments: Continued to experience depreciation, both around -0.68% to -0.54%.
4. Wholesale Weekly Price Index
This index tracks wholesale price trends for 2–6-year-old vehicles, normalized to the start of the year for consistency. Recent data shows:
- A steady trend in 2024, closely aligning with pre-2020 averages, suggesting relative market stability.
- Seasonal fluctuations continue to influence wholesale prices, with November typically seeing a slight uptick in price stability.
5. Used Retail Price Index
The Used Retail Active Listing Volume Index is based on available listings across the U.S., normalized to track movement throughout the year.
- Inventory Levels: Active listings remain stable, reflecting consistent supply as dealers manage pricing to balance with consumer demand.
- Average Days to Turn: Now averaging around 45 days, indicating a balanced flow of inventory turnover in the used retail market.
6. Inventory Overview
With inventory levels maintaining stability, used vehicle supply aligns well with current consumer demand. This trend is reflected in stable retail prices as dealerships continue to manage stock and adjust pricing accordingly.
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7. Auction Conversion Rates
The auction conversion rate held steady at 58% this week, unchanged from the previous week. This stability reflects consistent buyer interest at auction, even as overall wholesale values exhibit moderate declines.
Highlighted Auto Industry News – November 2024
1. Tesla Cybertruck Faces Another Recall
Tesla has issued its sixth recall for the Cybertruck, affecting 2,431 units to address defective drive inverters. This recall requires a physical part replacement, unlike previous over-the-air updates. Tesla’s recent safety recalls highlight ongoing scrutiny and technical challenges faced by the new EV model.
2. ‘Bear Attack’ Insurance Scam Unveiled in California
In a bizarre case, four Los Angeles residents were arrested for allegedly staging bear attacks on luxury cars using a costume to defraud insurers for $141,839. Dubbed “Operation Bear Claw,” the investigation revealed video footage of a person in a bear costume causing damage to the cars, leading to fraud charges against the suspects.
3. Audi Launches New EV Brand in China
Audi introduced a new EV brand in China, simply named “AUDI,” targeting young, tech-oriented consumers. The first model, AUDI E, features innovative design, advanced technology, and an 800V architecture. Developed through Audi’s joint venture with SAIC, this launch emphasizes rapid market adaptation and underscores the competitive focus in China’s EV segment.
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Conclusion
The auto market’s second week of November shows signs of gradual stabilization as wholesale prices slow their decline and auction rates hold steady. Dealers are adapting inventory and pricing strategies to meet demand, while consumer interest in both new and used vehicles remains resilient. Industry updates like Tesla’s Cybertruck recalls and Audi’s expansion into the Chinese EV market illustrate the ongoing innovation and challenges shaping today’s auto landscape.
Stay tuned for further insights as we track these developments and their impact on pricing trends through November.
