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Despite the limited inventory on dealer lots, dealer lanes continue to have higher volume at auction, while manufacturers’ remarketing lanes are offering less and less in open sales channels.
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Last month we noted that the record run of value increases we have seen over the past 18 months appeared to be slowing down and possibly ending.
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As wholesale prices started to decline in July, the seasonally adjusted Retention Index reversed the trend for the first time this year and decrease to 161.8 points.
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Days-to-turn for used retail listings have been increasing, as retail demand softened over the last few weeks.
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Used wholesale and retail prices are starting to stabilize in July (although at a remarkably high plateau), but new car sales are still on a rollercoaster as the chip shortage is finally showing up in the new sales numbers.
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Appraisal service helps dealers acquire used car inventory direct from consumer driveways.
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Wholesale values continue to decline after a monstrous 22-consecutive weeks of gains; however, sales conversion rates were also down last week. We anticipate that dealers will begin gradually and moderately reducing their floors.
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The June Retention Index increased again, although at the slower rate, and broke yet another record, reaching 166.0 points.
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Wholesale values are finally starting to simmer down but make no mistake, supply channels haven’t been restored and the market remains strong.
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Another week of gains for the exceptionally strong wholesale market; however, that pace has slowed tremendously.
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