04/04/2020
Car Prices Drop 4% at Auction
Spring is usually the high season when it comes to car sales. Dealers, anticipating tax refund checks stock up on inventory.
The early March week to week price index was as high as 1.25% signaling the beginning of the Spring car season. This is a stark contrast the the late March/early April price index of -2.5% which is almost a 4% swing in prices.
4% might not seem that high on first glance, however if this trend continues, car prices are set to drop around 15% by mid-May.
| Index | w/w Price Reduction | |
| Week 1 | 100 | |
| Week 2 | 96 | 4% |
| Week 3 | 92.2 | 4% |
| Week 4 | 88.5 | 4% |
| Week 5 | 84.9 | 4% |
| Total Drop | 15.1 |
Weekly Change of the Volume Weighted Wholesale Average Values Before Covid
Weekly Change of the Volume Weighted Wholesale Average Values After Covid
Sales volume and prices drop despite historic fuel prices.
The price of a gallon of gasoline is sharply down year to date and compared to the same time last year, is down 23%. This would normally translate to increase sales, but the unprecedented low demand is pushing car prices down.
2020 Post-Corona Predictions:
- New Car Sales to be down 35 to 40% from 2019 levels
- Used Car sales down 25 to 30% from 2019 levels
- Insane specials and rebates
- Zero percent financing
