Used-Car Prices

Black Book sees depreciation hit weekly high

LAWRENCEVILLE, Ga. - 

Get ready for turkey and softer prices in the lanes.

This week’s Black Book Market Insights report showed that used-vehicle value depreciation hit an all-time weekly high for 2017. Editors indicated sub-compact luxury crossovers saw the largest decrease in values last week, dropping by 1.25 percent. A close second, minivans saw the next-highest depreciation, falling by 0.94 percent.

“A great deal can change with values over a few weeks. Many segments are rapidly shifting toward seasonal high declines,” Anil Goyal, senior vice president of automotive valuation and analytics at Black Book, said.

Looking at volume-weighted data, editors found that overall car segment values decreased by 0.67 percent last week, the highest weekly average depreciation rate for cars this year.

Black Book added that the midsize and near luxury segments also had their respective highest weekly depreciation rates of the year at 0.90 percent and 0.89 percent, respectively. The compact segment followed closely with a near-high at 0.82 percent.

Again reviewing volume-weighted information, editors determined overall truck segment values — including pickups, SUVs and vans decreased by 0.5 percent last week, the highest weekly average depreciation rate since January.

Black Book went on to mention the sub-compact luxury crossover segment had the highest weekly depreciation rate at 1.25 percent. The minivan and full-size crossover/SUV segments had their highest declines this year at 0.94 percent and 0.91 percent, respectively. 

Turning next to what Black Book’s representatives in the lanes last week, two of the most notable anecdotes originated out of California.

“A major national remarketer reported that his vehicles brought the highest values in many, many years in October 2017. He also stated that he has seen the values begin to slip in November and expects the softness to continue into early 2018,” one late watcher in the Golden State reported.

Another report surfacing out of California added, “Lots of no-sales in most of the lanes. Only a couple of remarketers had lowered their floors enough to sell at a high percentage.”

Sliding over the Rocky Mountains, the report out of Colorado included details that likely won’t surprise dealers.

“Trucks and SUVs remain in demand, which is not unusual for our market, especially in the fall,” the Black Book representative stationed in Colorado shared.

In the Midwest, another specific segment kept ringmen busy.

“The nicer vehicles are still in demand and sell, but there was more interest than normal in the higher mileage vehicles. Dealers are having difficulty sourcing the really good condition vehicles in the luxury segment,” Black Book’s lane watcher in Indiana said.

Finally, wrapping up in Georgia, the representative said, “Mid-size and sporty cars were selling well, but most of the attention was still on the trucks and SUVs.”

Truck demand pushing wholesale prices in similar segments

CARMEL, Ind. - 

If someone lost a pickup to one of the hurricanes earlier this year, KAR Auctions Services chief economist Tom Kontos suspects you might might be part of what's helping to prop up prices for similar late-model vehicle segments.

Kontos explained his thinking as ADESA Analytical Services shared its monthly analysis of wholesale used-vehicle prices by vehicle model class. Kontos relayed that wholesale used-vehicle prices in October averaged $10,977, which was down 0.6 percent compared to September and up 4.2 percent relative to October of last year.

Kontos mentioned in his latest edition of Kontos Kommentary — which also can be viewed here or through the window at the top of the page — prices were flat or down on a month-over-month basis for all model class segments, but were up year-over-year for all but full-size cars.

“Average wholesale prices in October were down only modestly month-over-month and were up year-over-year, bolstered by lingering impacts from Hurricanes Harvey and Irma,” Kontos added.

Continuing the impact of those storms, Kontos shared that wholesale prices for 3-year-old midsize SUVs and CUVs with about 36,000 to 45,000 miles rose by more than $1,000 or 5.7 percent year-over-year in October.

“Strong truck demand in Texas in the aftermath of Harvey may be a contributing factor to the strength of midsize SUV/CUV prices,” Kontos said.

Elsewhere within the wholesale space, Kontos noted that average wholesale prices for used vehicles remarketed by manufacturers ticked up 0.6 percent month-over-month and were up 5.7 percent year-over-year in October.

The KAR chief economist added that prices for fleet/lease consignors softened 1.6 percent sequentially but climbed 4.5 percent annually.

Kontos closed by stating average prices for dealer consignors dipped 0.3 percent versus September but shot up by 7.5 percent relative to October of last year.

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   October 2017  September 2017  October 2016  Prior Month  Prior Year
           
 Total All Vehicles  $10,977  $11,046  $10,530  -0.6%  4.2%
           
 Total Cars  $8,713  $8,777  $8,504  -0.7%  2.5%
 Compact Car  $6,581  $6,681  $6,388  -1.5%  3.0%
 Midsize Car  $7,849  $7,788  $7,362  0.8%  6.6%
 Full-size Car  $7,117  $7,243  $7,506  -1.7%  -5.2%
 Luxury Car  $13,640  $14,016  $13,425  -2.7%  1.6%
 Sporty Car  $13,928  $13,906  $13,135  0.2%  6.0%
           
 Total Trucks  $13,087  $13,183  $12,464  -0.7%  5.0%
 Minivan  $8,774  $9,061  $8,294  -3.2%  5.8%
 Full-size Van  $13,086  $13,165  $12,717  -0.6%  2.9%
 Compact SUV/CUV  $10,635  $10,679  $10,487  -0.4%  1.4%
 Midsize SUV/CUV  $11,276  $11,424  $11,143  -1.3%  1.2%
 Full-size SUV/CUV  $13,838  $13,742  $13,725  0.7%  0.8%
 Luxury SUV/CUV  $19,068  $19,209  $18,313  -0.7%  4.1%
 Compact Pickup  $9,371  $9,591  $8,426  -2.3%  11.2%
 Full-size Pickup  $16,644  $16,963  $15,225  -1.9%  9.3%

Source: ADESA Analytical Services. September data revised.

Used market, inventory ‘mismatched with demand’

SANTA MONICA, Calif. - 

Used sales were down by about 3 percent from last year’s performance in the third quarter. According to the Edmunds "Q3 2017 Used Vehicle Market Report" released earlier this week, the drop was caused by a slowdown in used-vehicle sales in Texas and Florida due to recent hurricanes.

In Q3, there were a total of 9.36 million total sales; compared to 9.67 million sales during the same quarter of 2016. This past quarter, 2.9 million of these used vehicles were franchise used sales, while CPO sales came in at a total of 678,960, according to the Edmunds report. 

“CPO sales continue to benefit from the abundance of off-lease inventory and represented 23 percent of all franchise used sales,” the report stated.

The report also pointed out that used-vehicle prices are edging higher due to strong sales of trucks and SUVs. The average transaction price for a retail used vehicle in Q3, according to Edmunds data, was $19,402, which is up 0.9 percent from the same period last year.

As for what’s causing the upward trend, Edmunds has this to say: “The share of sales of 3-year-old and newer vehicles has stabilized and isn’t pulling the average toward higher ‘near new’ pricing as that segment had in the past.

“However, pricier light trucks bought new at retail and for rental fleets have still managed to push used prices higher,” the report continued.

Another trend that could be driving prices higher for used cars? More lower mileage vehicles. According to the report, average mileage on used vehicles is dropping. Since Q3 of 2012, the average number of miles on a used-car transaction has dropped 14 percent.

Edmunds attributes this trend to “the pipeline” of low-mileage lease returns that are hitting the market.

But this could potentially cause issues for dealers as Edmunds shared newer and lower mileage used units are sitting on dealers lots while consumers instead choose older and less expensive vehicles.

In other words, the used market and inventory is “mismatched with demand,” Edmunds pointed out. Shoppers are looking for cheaper and older used models, but the market is flush with 3-year-old and newer used pre-owned vehicles. And the flow of lease returns is not expected to slow anytime soon.

“Within the next few years, we will continue to see the population of off-lease used vehicles swell, which is likely to drop their values due to market saturation,” Edmunds said. “This trend is likely to put pressure on the market downstream when their values become closer in line with those of older and higher-mileage vehicles.”

Manheim Index stretches record-setting streak to 6

ATLANTA - 

Make it six months in a row that the Manheim Used Vehicle Value Index has set a new record high.

Cox Automotive reported this week that wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) increased 1.02 percent month-over-month in October. This rise pushed the index reading to 136.3, which was a record high for the sixth consecutive month and an 8.1-percent increase from a year ago.

On a year-over-year basis, all major market segments again saw gains, including midsize cars. SUVs/CUVs, pickups and vans, which outperformed the overall market with increases of 8.8 percent, 11.7 percent and 9.2 percent, respectively.

“Though wholesale market values continue to show strength as a result of growing retail demand, most of this price strength can be attributed to the recovery following Hurricane Harvey and Hurricane Irma,” Cox Automotive chief economist Jonathan Smoke said in commentary that accompanied the index update.

“Replacement demand combined with a reduction in available supply has caused wholesale inventories to tighten,” Smoke continued. “The impact to the wholesale market was widespread, resulting in abnormal wholesale price gains for another month.”

The last time the index generated an upward march this long came at the end of 2011 into the first part of 2012. That’s when the reading went from 122.8 in October 2011 up to 126.2 in March 2012.

As they were then, used vehicles now are rolling over the curb at a good clip.

According to Cox Automotive estimates, used-vehicle sales improved by 3 percent year-over-year in October. The October used SAAR decreased to 39.7 million units from September’s 41 million.

Smoke  indicated the retail growth in used sales is coming from vehicles less than 4 years old, which have grown 14 percent year-over-year, year-to-date. 

Vehicles less than 4 years old represent the largest age segment of vehicles in the used-car market,” he said.

And one other note on the wholesale market, Cox Automotive reported that rental risk pricing improved in October, as well.

The average price for rental risk units sold at auction in October was up 4 percent year-over-year. Rental risk prices were down 3 percent compared to September.

Cox Automotive added that average mileage for rental risk units in October at 42,500 miles was 1 percent above a year ago.

Smoke wrapped up his analysis by noting the U.S. economy “continues to chug along.”

Smoke relayed that the first estimate of real GDP growth in the third quarter came in at 3.0 percent, beating expectations of 2.6 percent growth.

“Two consecutive quarters of 3 percent or greater growth is a positive improvement, as we have not seen two such strong quarters in a row since mid-2014,” Smoke said. “After declining in September, consumer sentiment rebounded in October, with the final reading from the University of Michigan coming in at 100.7, its highest level since the start of 2004.

“Households are feeling more upbeat about the outlook for the U.S. economy, which is a solid leading indicator of consumer spending and the rest of the economy in the fourth quarter,” he went on to say.

Dealers back off inventory build, triggering price reaction

LAWRENCEVILLE, Ga. - 

Whether it’s just a momentary slowdown or the sign of a longer-term dealer trend, Black Book watched vehicle depreciation slightly intensify as store managers opted not to load up on potential inventory coming through the auction.

The latest Black Book Market Insights report shows both car and truck segments decreasing more in value than usual. Although car segments saw an overall larger depreciation, editors noticed two truck segments saw larger price declines as a percentage than any of the car segments.

“Depreciation rates increased on both car and truck segments as buyers become hesitant to load up on inventory,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.

Black Book’s representatives in the lanes back up Goyal’s assertion beginning with what the lane watcher in Florida reported back to headquarters.

“More no sales than the past few weeks as buyers don’t seem to be speculating at all,” said the representative in the Sunshine State.

Next door in Georgia, a similar story unfolded as Black Book’s watcher said, “A large quantity buyer says that he will wait until the sellers lower their floor prices, which he believes is just around the corner.”

Out West, the sentiment continued with dealers not ready to gamble in Nevada.

“The market remains good but dealers are cautious about over supplying their retail lots in the event of a downward market pivot,” Black Book’s representative said.

And in Arizona, the lane recap was, “More hesitation in the bidding process this week, which produced a noticeable amount of no sales.”

The impact of those dealer decisions meant that based on volume-weighted data, overall car segment values declined by 0.60 percent last week. In comparison, the market values had decreased on average by 0.41 percent per week in the previous four weeks.

Among cars, editors determined the full-size car and sporty car segments performed the worst, decreasing by 0.94 percent and 0.82 percent, respectively.

Again looking at volume-weighted data, Black Book reported that overall truck segment values — including pickups, SUVs and vans softened by 0.40 percent last week, worse than the average decrease of 0.25 percent per week recorded during in the previous four weeks.

Among trucks, editors noticed the sub-compact crossover and compact van segments performed the worst last week, dipping by 1.03 percent and 1.13 percent, respectively.

Specialty market update

As the editors do on a monthly basis, Black Book also offered its latest assessment of the specialty segments of the wholesale market. Here is the rundown:

— Collectibles: Editors indicated most segments of the collectible car hobby have done well at the various auctions held so far this fall.

— Recreational vehicles: Black Book reported values of both motorized and towable units sold at wholesale auctions increased once again this past month, “which, as we said last time, is unusual for this time of year,” according to the editors.

— Powersports: Black Book said November finds the powersports market in a leveling off period. “Changes in value this month are more subdued than we have seen recently,” editors added.

— Heavy-duty: Black Book calculated a good supply of units in several segments helped to maintain steady depreciation in October. Editors noted that construction/vocational group values have dropped the most since August, but still bring strong numbers.

— Medium-duty: Black Book acknowledged the wholesale market continues its downward trend. However, some late-model unit prices have stabilized,” editors said.

2 ingredients keep Black Book index moving higher

LAWRENCEVILLE, Ga. - 

Black Book sees two elements coming together to prop up used-vehicle prices and, in turn, push its Used Vehicle Retention Index higher for the second month in a row.

Black Book recently released its October index and noticed an increase of 0.6 percent month-over-month from 113.9 to 114.6. It’s the second straight monthly increase dating back to August when the reading stood at 112.6.

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as a percent of original typically-equipped MSRP. It is weighted based on registration volume and adjusted for seasonality, vehicle age, mileage and condition.

Black Book explained the last remaining expected replacement activity stemming from Hurricanes Harvey and Irma drove continued vehicle valuation stability and shopping demand during the month of October.

During the month, vehicle segments such as compact crossover SUV (up 1.3 percent), full-size car (up 1.3 percent), full-size crossover SUV (up 1.7 percent) and full-size pickups (up 2.0 percent) were a few of the categories that saw noticeable retention strength due to increased demand during October.

“So far this year, we have seen a very strong performance for used-vehicle value retention, driven largely by the surprising value shoppers found in the affordable smaller cars after spring, and the huge demand resulting from hurricane replacements in the fall,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book.

“Looking ahead in the next two months, we expect the market to decline slightly but still end this year with a better-than-expected strength in used vehicle values,” Goyal continued.

The index dates back to January 2005, where Black Book published a benchmark index value of 100.0 for the market.

During 2008, the index dropped by 14.1 percent while during 2016, the index fell by just 6.4 percent. During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher.

The index continued to remain relatively stable, rising slightly until May 2014 when it hit a peak of 128.1.

To obtain a copy of the latest Black Book Wholesale Value Index, go to this website.

Used-vehicle value retention stronger than 'typical'

LAWRENCEVILLE, Ga.  - 

There are a lot of things typical for autumn: leaves changing colors, the World Series and the air getting cooler (sort of). 

This autumn, the pattern in used-car values is anything but typical. 

Used vehicles continue to hold their values better than what’s expected for this time of year, according to Black Book, which said trucks remain ahead of their car counterparts when it comes to price retention.

The latest Black Book Market Insights report indicates that car segments depreciated 0.38 percent last week. That was on par with the four weeks prior, when depreciation averaged 0.37 percent.

Trucks, with 0.25 percent depreciation last week, are holding their values better than cars, but their depreciation did climb. In the prior four weeks, average depreciation for trucks was 0.20 percent.

“Depreciation levels remain better than typical fall-season trends. Truck segments continue to perform better than cars in weekly depreciation,” said Anil Goyal, the company’s senior vice president of automotive valuation and analytics, in the report.

Breaking it down by segment, the car category with the best retention was the full-size cars, which was off just 0.19 percent. Premium sporty cars had the greatest depreciation at 0.59 percent.

For trucks, full-size crossovers/SUVs led the way, as their values depreciated only 0.02 percent. Small pickups showed the most depreciation at 1.09 percent.

Black Book’s data includes used vehicles from model-years 2009 through 2015 and reflects volume-weighted wholesale average values.

3-year retention bright for yellow, orange cars

BOSTON  - 

The brighter the car color, the brighter its future retention.

According to an iSeeCars.com analysis of 2.1 million used vehicles, yellow vehicles depreciated an average of just 27 percent in value after three years, and orange cars depreciated 30.6 percent.

These school bus-inspired colors led the class, as they had the lowest depreciation rates among the 13 colors included in the analysis.

Yellow and orange were followed closely by another color that can be both rare and bright: green, at 30.9-percent depreciation.

The average cars depreciates 33.1 percent after three years, according to the iSeeCars study

“Yellow cars are relatively less common, which could drive up demand and help maintain their value,” iSeeCars chief executive officer Phong Ly said in the analysis.

“Our analysis shows that yellow vehicles have the lowest depreciation of any color for lower-volume cars like convertibles,” he said. “Interestingly, yellow is also the color with the least depreciation for popular body styles like SUVs and pickup trucks.”

As Ly notes, rarity certainly plays a role. The company said that just 1.2 percent of all 3-year-old cars are either yellow, orange or green.

However, the two other colors that had better-than-average depreciation were white at 32.6 percent and red at 32.7 percent, which are actually both quite common.

Additionally, the three colors with the highest depreciation rates — gold at 37.1 percent, purple at 36.7 percent and beige at 36.6 percent — are also pretty rare, making up just 0.7 percent of the market. 

So what gives? 

For gold, in particular, Ly notes that its “near-universally poor depreciation may reflect lower consumer demand for the color — given the choice, consumers may just prefer the more common colors or flashier colors.”

Speaking of the common colors, white was slightly better than average at 32.6 percent, black was a bit below at 33.6 percent, and gray was at 33.5 percent — meaning the respecitve depreciation rates for the most common colors were all within a percentage point of the average score.

 “Because these colors are so common, buyers can shop around more easily if they're interested in these colors, reducing the amount of pricing power for dealers,” Ly said.

Below is a list of average depreciation over three years for the respective colors in iSeeCars data:

Yellow: 27.0%

Orange: 30.6%

Green: 30.9%

White: 32.6%

Red: 32.7%

Average Car: 33.1%

Blue: 33.5%

Brown: 33.5%

Gray: 33.5%

Black: 33.6%

Silver: 34.0%

Beige: 36.6%

Purple  36.7%

Gold: 37.1%

Storm-theme wholesale song plays again in September

CARMEL, Ind., and STAMFORD, Conn. - 

An accomplished musician beyond his analytical chops, KAR Auction Services chief economist Tom Kontos has previously seen a storm-themed song play its familiar tune in the wholesale market.

The company’s latest data showed the melody showed up again in September.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in September averaged $11,046, representing a lift of 0.9 percent compared to August and 2.9 percent relative to September of last year.

“Average wholesale prices in September were up month-over-month and year-over-year, bolstered by dealer demand in the hurricane-stricken regions,” Kontos said. “This impact may be waning and prices are likely to resume the softening pattern seen prior to these catastrophic events.

“In short, Harvey and Irma seem to have resulted in an impact to wholesale prices like that seen in the aftermath of Sandy: A lift of limited duration, geographic scope, and magnitude, but a lift nonetheless,” he continued in his latest Kontos Kommentary that also includes a video available here or via the window at the top of this page.

“Another underlying factor is the stop-sale of manufacturer units involved in recalls, which is keeping some of the supply growth, and the inevitable downward pressure on prices, at bay,” Kontos went on to say. “This, too, should resolve itself with time, resulting in a return to the softening price trend seen previously.”

Though truck segments outperformed car segments, Kontos explained prices moved higher for both groups, unlike in previous months when car prices often softened while truck prices climbed. 

“This could be indicative of greater balance in the supply of both groups of vehicles, whereas previously trucks were in relatively short supply,” Kontos said.

Looking again at a specific wholesale segment that’s become a staple of his monthly updates, Kontos pointed out that fleet and lease sales of two particular kinds of vehicles with 36,000 to 45,000 miles produced price climbs on a year-over-year basis in September.

Prices for midsize cars in this space rose by $304 or 2.7 percent to $11,641 while prices for midsize SUVs and CUVS jumped by $710 or 3.7 percent $19,767.

“Last month, when midsize SUV/CUV prices were down in this table, we suggested that prices might turn up in the aftermath of Harvey and strong truck demand in Texas. This appears to have been the case,” Kontos said.

That Texas truck demand also might have surfaced in the latest data from RVI Group, which saw both is real and nominal Used Vehicle Price Index climb on a sequential basis in September.

RVI Group indicated its September real index reading for full-size trucks climbed 2.7 percent month-over-month and 3.6 percent year-over-year.

Analysts found the RVI Used Vehicle Price Index (Real) increased from August to September by 1.8 percent. However, when compared to September of last year, prices were down by 0.4 percent.

Their Used Vehicle Price Index (Nominal) also moved 1.8 percent higher in September when compared to August. When compared to September of last year the index increased by 1.4 percent.

Turning back to ADESA’s September information, Kontos mentioned average wholesale prices for used vehicles remarketed by manufacturers were down 0.7 percent month-over-month and up 4.1 percent year-over-year. 

Prices for fleet/lease consignors rose 0.2 percent sequentially and 3.6 percent annually.

Average prices for dealer consignors ticked up 0.5 percent versus August and 5.7 percent relative to September of last year.

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   September 2017  August 2017  September 2016  Prior Month  Prior Year
           
 Total All Vehicles  $11,046  $10,947  $10,731  0.9%  2.9%
           
 Total Cars  $8,777  $8,732  $8,663  0.5%  1.3%
 Compact Car  $6,682  $6,624  $6,495  0.9%  2.9%
 Midsize Car  $7,785  $7,639  $7,518  1.9%  3.6%
 Full-size Car  $7,243  $7,063  $7,608  2.5%  -4.8%
 Luxury Car  $14,007  $14,003  $13,769  0.0%  1.7%
 Sporty Car  $13,930  $13,903  $13,353  0.2%  4.3%
           
 Total Trucks  $13,182  $13,036  $12,735  1.1%  3.5%
 Minivan  $9,059  $8,777  $8,383  3.2%  8.1%
 Full-size Van  $13,005  $13,009  $13,457  0.0%  -3.4%
 Compact SUV/CUV  $10,673  $10,468  $10,525  2.0%  1.4%
 Midsize SUV/CUV  $11,430  $11,407  $11,655  0.2%  -1.9%
 Full-size SUV/CUV  $13,740  $13,353  $13,255  2.9%  3.7%
 Luxury SUV/CUV  $19,205  $18,947  $18,591  1.4%  3.3%
 Compact Pickup  $9,591  $9,599  $8,608  -0.1%  11.4%
 Full-size Pickup  $16,964  $16,989  $15,878  -0.2%  6.8%

Source: ADESA Analytical Services.

Projected October wholesale price move to be half of year-ago figure

McLEAN, Va. - 

With a stronger than normal performance pushing September price readings, the analyst team at J.D. Power Valuation Services is projecting that October’s wholesale movements will be less than half of what was recorded during the same month a year ago.

According to their latest issue of Guidelines, analysts expect that wholesale prices of vehicles up to 8 years in age will decline by approximately 1.6 percent in October. Should that projection come to fruition, it would represent a significant change from October 2016 when J.D. Power Valuation Services found that wholesale prices dropped by 3.7 percent.

“At the segment level, car losses are still expected to outpace those of trucks and SUVs,” analysts said in the report. “Continuing the trend of recent months, losses for luxury segments are forecast to fall by slightly more than the industry average for the month.”

J.D. Power Valuation Services added that it is continuing to watch how impact from Hurricanes Harvey and Irma are modifying full-year expectations. The latest update has used-vehicle prices falling by about 5.3 percent based on the J.D. Power Valuation Services’ Used Vehicle Price Index.

Last year’s move came in at a 4.1-percent softening. Looking ahead to 2018, analysts are suspecting that index-based losses to decelerate to about 3 percent.

As referenced earlier, September shook out similarly to what analysts are predicting to happen in October. The J.D. Power Valuation Services’ Used Vehicle Price Index increased 1.6 percent in September to 113.4, marking the second straight month of an upward climb.

Through the first nine months of the year, analysts calculated that the index is down 6.6 percent compared to the same stretch in 2016.

What pushed the September reading higher was wholesale prices of vehicles up to 8 years old dipping by just 1.1 percent.

“As expected, used-vehicle prices performed exceptionally well due in large part to significant decreases in supply and increase in demand stemming from disruptions of Hurricane Harvey and Irma,” analysts said in the report while adding that September prices dropped on average by 3.1 percent during the calendar’s ninth month of the past five years.

Looking at segment-level movement, J.D. Power Valuation Services indicated mainstream car losses were “mild” in September, predominantly falling into the tight range of 0.1 percent for midsize cars to 1.0 percent for compact utilities.

Within luxury units, analysts noticed losses were generally more pronounced with luxury compact utility prices dropping by the most at 2.7 percent.

“The compact utility segment continues to struggle from an influx of late-model auction volume, which has helped depress prices,” the report mentioned.

Furthermore, one luxury segment enjoyed a surprising lift as J.D. Power Valuation Services determined that prices for luxury large cars rose 1 percent in September; a month when typically the segment has declined by an average of 3 percent during the past five years.