Revving Up the Weekly Auto Market Review: Ending October 21, 2023

Auto Market Update Week Ending Oct 21, 2023 (PDF)

In a period of prolonged uncertainty driven by the United Auto Workers (UAW) strike, the auto market finds itself in a holding pattern, with industry players adopting a cautious “wait-and-see” attitude. While the market overall continues to depreciate, the rate of decline remains somewhat atypical for this time of year.

Last week, a surprising glimmer of optimism emerged as the 8-to-16-year-old truck segments witnessed a slight upswing of +0.14%.

  This Week Last Week 2017-2019 Average (Same Week)
Car segments -0.46% -0.47% -0.57%
Truck & SUV segments -0.20% -0.32% -0.48%
Market -0.28% -0.36% -0.52%
Week Over Week Wholesale Price Changes Oct 25 2023
Week Over Week Wholesale Price Changes Oct 25 2023

Car Segments

  • On a volume-weighted basis, the comprehensive Car segment recorded a decline of -0.46%, displaying a marginal improvement compared to the preceding week’s -0.47% decrease.
  • Last week, every one of the nine Car segments experienced a decline. Most notably, the Sub-Compact Car segment registered the steepest decrease at -1.04%, surpassing the previous week’s -0.61% dip.
  • Remarkably, the Car segments comprising vehicles aged 0 to 2 years saw a reduction of -0.45%, whereas the 8-to-16-year-old Cars witnessed a decrease of -0.40%.
  • The Premium Sporty Car segment, despite minimal declines, saw a decrease of -0.21%, slightly surpassing the previous week’s -0.20% dip.
  • After two weeks of an upward trend, the Compact Car segment reverted to a decline. However, the rate of decline last week was milder at -0.25% compared to the previous week’s -0.53%.
Car Segments Weekly Wholesale Price Changes oct 25 2023
Car Segments

Truck and SUV Trends

  • On a volume-weighted basis, the overall Truck segment decreased by -0.20%, reflecting an improvement from the previous week’s -0.32% decline.
  • In a twist of expectations, vehicles in the 0-to-2-year-old category demonstrated an average decline of -0.26% last week, while their 8-to-16-year-old counterparts experienced an unforeseen increase of +0.14%.
  • Out of the thirteen Truck segments, the Mid-Size Crossover segment stood out, recording a +0.09% increase. This marks its third increase in the last five weeks.
  • Conversely, the Full-Size Crossover/SUV segment disclosed its most significant depreciation since the commencement of the UAW strike, with a decline of -0.38%, in stark contrast to the prior week’s -0.10% dip. For five consecutive weeks leading up to the strike, the segment had consistently documented declines surpassing 1% each week.
Truck Segments Weekly Wholesale Price Changes oct 25 2023
Truck Segments

Used Retail Insights

There are currently 1.05 points in the Used Retail Active Listing Volume Index.

Used Retail Listing Volume Index Oct 25 2023
Used Retail Listing Volume Index

Wholesale Market Dynamics

  • The UAW strike has entered its second month, and its resolution remains unclear, continuing to sow uncertainty in the market.
  • Recent observations indicate that auction inventory has stabilized over the past two weeks, and the overall market’s rate of decline has decelerated. Could these developments foreshadow a more positive week ahead?
  • The estimated Average Weekly Sales Rate retreated to 52% last week.
Estimated Average Weekly Sales Rate at US Auctions oct 25 2023
Estimated Average Weekly Sales Rate at US Auctions

In summary, as the UAW strike exerts its influence on the auto market, we witness a complex interplay of trends. While some segments show signs of improvement and stabilization, the overall market’s trajectory remains uncertain. Industry experts and dealers are closely monitoring developments, hoping for a clearer path in the weeks to come.

Stay tuned for further insights and updates on the ever-evolving auto market. We remain committed to keeping you well-informed.