Record-Breaking Value Decline in the Full-Size Vehicle Market
With the UAW strike now behind us, the automotive market is undergoing a correction, notably in the Truck and SUV segments. Black Book’s Weekly Market Insights reveals unprecedented single-week depreciation in Full-Size Vans and Full-Size Trucks. This article breaks down the key findings and market trends.
Segment-Wide Declines
The aftermath of the UAW strike has led to significant corrections across various segments, with declines surpassing 1%, and in some cases, exceeding 2% and 3%. This comprehensive overview explores the specifics of these corrections, revealing light on the current state of the automotive market.
Car Segment Trends
On a volume-weighted basis, the overall Car segment witnessed a decline of -1.13%, a notable increase from the previous week’s -0.57%.
Full-Size Car Segment Highlight
The Full-Size Car segment experienced the most substantial decline at -1.82% last week, a sharp contrast to the previous month’s average weekly decline of only -0.41%.
Subcompact Cars and Premium Sporty Cars
Sub-Compact Cars continue to face pronounced depreciation, with a -1.51% decline last week, compared to -0.92% in the prior week. Additionally, the Premium Sporty Car segment, which had minimal declines earlier this year, saw an increased rate of depreciation at -0.52% last week, compared to the average weekly rate of -0.15% over the past six weeks.
Truck Segment Overview
The volume-weighted, overall Truck segment witnessed a decline of -1.73%, surpassing the previous week’s depreciation of -1.12%.
Used Retail Days-to-Turn Estimate
Significant in its implications, the Used Retail Days-to-Turn estimate, currently at around 50 days, provides valuable insights into the speed at which used vehicles are circulating within the market.
This comprehensive analysis provides a clear understanding of the ongoing corrections in the automotive market post-UAW strike, particularly in the Full-Size Trucks and Vans segments.
