Smaller Cars Hit Hardest in Depreciation over the Last 3 Months

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight from the auction lanes. This week’s report also includes highlights and insights from the Specialty Markets. Click here to download the full report.

 

The Black Book editors conducted a thorough analysis of segment depreciation performance over the last three months. It is clear where consumer demand is currently, with smaller car segments feeling the heaviest depreciation, while pickups, SUVs and crossovers are at the opposite end of the spectrum.

 

“While car segments continued their steeper decline, luxury cars retained value better than other segments last week. Compact Pickup and Compact SUV segments were bright spots,” said Anil Goyal, Vice President of Automotive Valuation and Analytics. 

 

  • Volume-weighted, overall car values decreased by 0.45% last week, similar to the average depreciation rate over last 12 weeks but 3/4th of the depreciation rate seen this time last year.
  • Smaller cars have dropped the most over the last 3 months, with Entry Level Car segment dropping by over 9% in value during that period.
  • Volume-weighted, overall truck values decreased by 0.19% last week, similar to the average depreciation over last 12 weeks but 2/3rd of the depreciation rate seen this time last year. 
  • Compact Pickup, Mid-Size Pickup and Full-Size SUV segments have retained their value the best over the last 3 months changing less than 1%.

 

 

 

Specialty Markets Report Highlights:

  • Collectibles: In addition to world class Concours, Rallies, and Vintage Racing, there will be a number of auctions coming up (including Mecum, RM Sothebys, Russo and Steele, Bonhams, Gooding, and Rick Cole) which showcase literally hundreds of
  • truly exceptional collectible vehicles.
  • Recreational Vehicles: We have noted in earlier reports that the summer months tend to see lower wholesale activity since most dealers have already stocked up for their primary selling seasons, and I think it’s important to note that the volume of RVs sold at auction last month was down considerably.
  • Powersports: Prices across most segments in the powersports market are down this month as dealers begin their turn towards the fall sales season where ATVs and utility vehicles represent the majority of their business.
  • Heavy-Duty Trucks: Even with the introduction of the 2014 model year hitting our depreciation results for the first time this month, it is impressive how all three late model segments depreciated less in July than they did in June.
  • Medium-Duty Trucks: The continued decline in diesel prices is putting a damper on growth for NG fuels.

 

Click here to download the full report.

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