The wholesale value feast consignors have been enjoying for some time might finally be finishing.

Black Book spotted a wholesale price decline last week not seen in a year, as analysts said that overall values softened by 0.86%. That’s nearly double the decline that Black Book said the market recorded a week earlier.

And the decrease is more than triple what analysts calculated to be the average decline during the same week in 2017-2019.

Black Book elaborated about the movement through its latest installment of Market Insights released on Tuesday.

“The market experienced a significant decline last week, reminiscent of the declines experienced during Q3 of last year and the declines felt at the start of the pandemic,” analysts said in the report.  

“Auction lane conversion rates showed some slight improvement last week, as sellers have adjusted their floors to reflect the weakening consumer demand,” Black Book continued.

On a volume-weighted basis, Black Book indicated overall car segment values dropped by 0.91% last week, doubling the 0.45% decline registered a week earlier.

Analysts said prices within all nine car segments decreased last week, as values for near luxury cars (down 1.24%) and prestige luxury cars (down 1.06%) dropped the most.

Black Book pointed out that while the value dip of 0.21% for sub-compact cars was the smallest among all cars, that figure was the largest reported for that particular car segment since early March.

Meanwhile, Black Book said its volume-weighted data showed overall truck segment prices decreased 0.84% last week, giving back more than the 0.48% in value spotted during the previous week.

Analysts determined that full-size pickups sustained their largest value drop since last August, sliding by 0.84%. A year ago, prices for full-size trucks sunk 1.48%.

As all 13 truck segments reported value decreases, analysts said that price declines for full-size luxury crossovers/SUVs and sub-compact luxury crossovers led way at 1.76% and 1.67%, respectively.

Black Book wrapped up its latest update by noting that the estimated average weekly sales rate remains somewhat stagnant, sitting at about 67%.

“The wholesale market last week did not change much, with still very few model year 2022 vehicles running through the lanes,” analysts said. “Consistent with two weeks ago, older model years (model year 2017 to model year 2019) were still offered in the lanes with higher mileage and lower quality.

“Large independent dealers and franchise dealers were active in the lanes, and it looked as if sellers were softening their floors because sales rates were higher than they have been the last couple of weeks. Fuel prices for gas and diesel both decreased last week, and we can see the market continuing to soften,” Black Book concluded.