December's Auto Wholesale Market: Key Trends Impacting the Closing Month of 2024

Bar chart showing wholesale market trends for cars and trucks.

December's Wholesale Market: Notable Trends Emerging

As the final month of 2024 unfolds, the automobile wholesale market is showcasing several intriguing patterns that could signal broader trends for dealership principals, general managers, and fixed operations directors. Black Book's recent observations reveal a subtle yet significant drop in overall wholesale prices, decreasing by 0.63% during the first week of December. While this might sound alarming, it's consistent with typical seasonal expectations and provides an interesting snapshot of the current market dynamics.

Deeper Dive into Vehicle Segments

Inspecting the vehicle segments more closely, specific trends emerge. Older vehicles, particularly those aged between 8 and 16 years, have shown resilience with a mere 0.38% drop in depreciation, contrasted with 2 to 8-year-old vehicles declining by 0.63% and newer 0 to 2-year-old units decreasing by 0.55%. Additionally, minivan prices saw the steepest decline since November 2023, dropping by 1.30% last week alone. Notably, the used market for full-size trucks faces pressure due to rising incentives on new models, resulting in a 0.87% value decline for relatively new, 0-to-2-year-old, full-size trucks.

OEM Trends and Auction Insights

In the OEM lanes, a noticeable pattern persists as an increasing number of vehicles enter the lanes each week by some manufacturers, a trend ongoing for the past four months. This increase in volume highlights potential shifts in OEM strategies or inventory management practices. Black Book continues to monitor these developments closely, offering invaluable insights into future movements.

Future Implications for Dealerships

As dealerships prepare for 2025, understanding these dynamics becomes crucial. Intense seatbelts—prices fluctuate seasonally, strategic acquisitions during dips could yield robust returns as market conditions normalize. Staying attuned to changes in inventory levels, price fluctuations, and incentive structures will empower decision-makers within the industry to capitalize on emerging opportunities while mitigating risks.

For those looking to dive deeper into these trends and analyze how they can impact your strategic planning decisions, Black Book's detailed insights remain a valuable resource.

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