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Seasonally adjusted Retention Index down to 193.0 points in February of 2022 as questions about the strength of the upcoming Spring market remain.
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Wholesale market declines continued last week, but the pace is starting to slow down.
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The Estimated Average Weekly Sales Rate has dropped to 61% this week, after a few weeks at 62%. This is not surprising as wholesale buyers try to anticipate consumer sentiment and wholesale seller behavior.
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The rate of week-over-week declines has accelerated, exceeding the typical seasonal expectations for this time of year.
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The Mid-Size Car segment had the largest decline last week, at -0.76%, compared with the prior week’s decline of -0.64%, marking the third consecutive week the segment has reported the largest segment decline.
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The seasonally adjusted Retention Index moved up by 0.6% – the lowest rate of increase since July – reaching 197.0 points during the first month of 2022.
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Used Retail Prices are more accessible than in years past, due to the proliferation of ‘no-haggle pricing’ for used-vehicle retailing.
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Weekly declines continued last week, but the rate of decline is still less than is typically experienced this time of year. Sellers are holding firm to floors, and we have yet to see conversion rates return to pre-holiday levels.
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The declines are continuing to close out the second week of 2022 with majority of segments reporting drops in valuations.
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The year is starting off with declines in many segments, but it remains to be seen if we reached the peak of increases before the holidays or if we will return to increasing values as the market prepares for spring.
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