![]() ![]() Retail demand slowed down leading up to the December holidays, and thus resulted in declining retail asking prices over the last several weeks of 2020. With the proliferation of ‘no-haggle pricing’ for used-vehicle retailing, asking prices accurately measure trends in the retail space. ![]() This week we will finally get a view at the all-new 2022 Jeep Grand Wagoneer, set to be revealed on Thursday, March 11th at noon EST.Last week, delivery giant, FedEx, joined in the announcements, with their plans to be all-electric by 2040. Recently, many OEMs have been announcing their plans for an electrified future.The microchip shortage continues to cause troubles with GM announcing they were extending some of their production shutdowns as a result of the shortage this time the extension pushes the closures into April.It is estimated that some OEMs could see impacts on production as early as this week. Due to the winter weather a few weeks ago, there is the potential for a shortage of foam used in vehicle seats. Now it is reported there is a new challenge on the horizon. New car manufacturing has had a tough start to 2021 as a result of the global microchip shortage, extreme winter weather, and an earthquake in Japan.Graph below looks at trends in wholesale prices of 2-6-year old vehicles, indexed to the first week of the year. So far, Spring market arrived about 7 weeks earlier and with much stronger price increases compared to a typical pre-COVID year. It appears that 2021 will not have typical seasonality patterns. We saw a similar picture in 2009, at the end of the Great Recession. 2019 calendar year) in the wholesale market were not observed for most of the year. With economic patterns (including the automotive market) driven by the pandemic, normal seasonal patterns (e.g. All luxury crossover/SUV segment increases were well below +0.50%, a sharp contrast to the larger increases experienced by the mainstream segments.Ģ020 ended with used wholesale prices at elevated levels. The luxury SUV segments are seeing increases, but the weekly gains are staying much smaller than the mainstream segments.The previous week it took home the top spot for largest Truck segment increase at +1.39%. The Sub-Compact Crossover segment increased +1.23%.The Truck segments had unseasonable gains again this past week, but the rate of gain remained stable with the prior week.The Near Luxury Car segment had the largest weekly luxury car segment increase this past week at +0.78%, compared to +0.43% the week prior. The luxury segments are slowly showing growth.The mainstream Car segments (Sub-Compact through Full-Size) all had gains this past week in excess of +1.00%.Sporty Cars continue to rise with a third consecutive week of the highest level of weekly increase among the reporting segments. ![]() The Car segments increased the rate of gain to +1.11%, compared to 0.85% the previous week. ![]()
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