During the last week of December, auction prices were on the way down, but activity in the lanes held up well amidst the holidays.
According to the latest Black Book Market Insights report, although all segments depreciated as 2015 came to a close, Black Book editors said auction personnel noticed overall prices stayed relatively strong throughout the holiday season, perhaps boding well for a strong start to the new year as we head into tax season.
“Overall, auction activity seems to have held up well this week considering the holidays. Maybe this will lead to a strong start for the New Year,” said Anil Goyal, vice president of automotive valuation and analytics.
This sentiment echoed throughout the lanes, as Black Book editors overheard an attendee from Alabama say, “Considering the holidays, it was a very good sales this week. Many more sales and buyers than I expected.”
Another auction attendee from Tennessee said, “Strong prices here today with a lot sold.”
According to Black Book data, car values fell by 0.33 percent or $40 last week, while truck values dropped by 0.36 percent or $62.
Last week, all the car segments Black Book tracks had higher week-over-week depreciation rates, except for the prestige luxury segment, which remained stable.
The near-luxury car segment saw the largest depreciation among the cars, with rates dropping by $113 or 0.63 percent. The entry-level cars continued to experience larger-than-average declines, with prices dropping by 0.49 percent or $32 last week. But the compact car segment, which had seen rates drop significantly over the course of 2015, only saw prices fall by 0.09 percent or $8 to wrap up the year.
Interestingly, Black Book also pointed out the luxury level car segment, which saw prices drop by 0.37 percent or $82 last week, was the only segment to see prices drop during each week of 2015.
Among the trucks, which saw similar depreciation rates last week, the midsize CUV and mini cargo van segments saw the largest depreciation, with rates dropping by 0.75 percent and 0.84 percent, respectively.
Compact SUV prices held steady last week, and the full-size passenger vans only dropped by 0.01 percent or $2. Other strong performers included the full-size cargo van segment, with a drop of 0.05 percent or $7, and the minivan passenger segment, with prices falling by just 0.13 percent or $18.