Automotive Market Update For November 2022 (PDF)

The fourth quarter typically accounts for the majority of the yearly depreciation, but this year the declines started in Q3 and are continuing to trend higher than typical. What’s different this year is that declines exceed 1% per week in many segments, but pricing remains well above pre-pandemic levels.

• All nine car segments saw a decrease last week, and four of the nine had drops greater than 1%.
• Over the last four weeks, cars have declined an average of 1.17% per week.
• Premium Sporty Cars (-0.59%) are declining at the slowest rate of all of the Car segments over the past six weeks.
• All thirteen truck segments reported a decline last week. Seven of the nine had declines of more than one percent.
• Last week, the Minivan segment dropped 1.63%. This average decline of -1.90% over the past 3 weeks is not good news for the Minivan segment.
• Full-Size Van has seen smaller declines this week, with a -0.16% drop versus the previous weeks -0.15%.
• Full-Size Pickup (-0.44%) had a fifteenth week with declines that were less than the size of the market average depreciation.

Wholesale

This week’s wholesale channels had lower-condition vehicles like prior weeks. We still have not seen as much impact from Hurricane Ian as we initially expected, though flood vehicles are starting to pop up in the lanes once again. Buyers were still not physically in the lanes this week, but they were competitively bidding online. Rental companies and large independent dealers still showed up, even though the floors remain high in many lanes. Sellers are holding tight to their floors and most cars that didn’t sell weren’t up for negotiation. The market is following three weeks of previous downward trends.