The graph illustrates the estimated year-over-year change in the monthly sold volume within the wholesale market. The summary includes all major wholesale channels, including open auctions (digital and physical), dealer-to dealer platforms, direct to dealer sales, etc. - Graphic: Black Book

The graph illustrates the estimated year-over-year change in the monthly sold volume within the wholesale market. The summary includes all major wholesale channels, including open auctions (digital and physical), dealer-to dealer platforms, direct to dealer sales, etc.

Graphic: Black Book

Over the last several weeks of 2020, wholesale sold volume decreased as dealers started to pull back on purchasing, according to Black Book.

Black Book reported a significant drop in sold volume (both month-over-month, and year-over-year) in wholesale channels from September to November of 2020.

There are several factors that contributed to this drop. For example, the no-sale rate increased substantially during the Fall season by about 15%, as many remarketers were not willing to adjust price floors.

There was also a year-over-year decrease in available units:

  • Rental companies held back some units to cover hurricane related rentals in September and October.
  • Lower volume was sold in November as purchases of new models are being pushed into 2021.
  • Repossessions are slow to hit the market, as the process has slowed down significantly compared to pre-COVID days.
  • Dealers are holding on to more trade-ins and lease returns compared to previous years.

However, the drops in volume were not uniform across all auctions and platforms, Black Book said.

Originally posted on Vehicle Remarketing

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