Black Book says the last month of the year was a suspenseful one, with change after change. Read the details below:

Wholesale Price Changes By Segment

December in the wholesale market was a rollercoaster, with significant weekly declines post-Thanksgiving. Despite robust auctions and ample inventory, sellers adjusted reserve prices, seeking new pricing "normal." Signs of a slowdown appeared mid-month, with declines under 2%, a notable improvement. As the holidays approached, auction activity slowed, setting the stage for a crucial final week. Retail sales success then will shape the market's direction for the new year.

Car Segment

Initial weeks in December saw an overall decline of -2.40%, notably with Compact Cars plummeting by a record-breaking -4.32%. As the month progressed, rates varied, with Sporty Cars accelerating the rate at -3.32%. By mid-December, the segment stabilized, experiencing a moderated decline of -1.03%, and in the final week, a further decrease of -0.51%. Premium Sporty Cars aligned with seasonal norms, while Compact Cars notably reduced depreciation to 0.30%, the lowest since late October. In the last week, no segment exceeded 1% depreciation, except for Sub-Compact Cars at -0.93%.

Truck and SUV Segment

The beginning week of the month saw a 1.64% decline, notably in Full-Size Luxury at -3.81%. By mid-December, the overall segment stabilized at -1.06%, with Minivans showing the smallest decline at -0.72%. In the final week, the decline further decreased to -0.78%, with the Compact Crossover/SUV segment at -0.48% and the Sub-Compact Luxury Crossover/SUV at -1.28%.

Wholesale Inventory

December saw significant declines in both car and truck segments, with sellers adjusting to market volatility. Auction conversion rates initially rose to 54% and later reached 56%. The second week showed a slower market decline, but auction rates dropped to 55%. In the final week, a holiday-related slowdown led to a decrease to 52%. Challenges like high-interest rates and declining used vehicle prices added uncertainty to year-end dynamics, highlighting the importance of retail sales.

Used Retail Listing

In December, the Used Retail Active Listing Volume Index experienced a decline, falling to 1.00 points by the second week and remaining below the year's starting point through the month. The Used Retail Days-to-Turn estimate increased from 56 to 58 days initially and further to 62 days by the mid-month, maintaining this level until the end of December.