As the calendar reached the midpoint of 2017, Black Book spotted some wholesale price movements that experts say might differ during the remainder of the year.
According to Black Book data, the average price of a used vehicle in June for model years 2012 through 2016 decreased in value by 1.3 percent, slightly more than the 1.2 percent change in May.
Editors indicated overall car values dropped by 1.8 percent in June; the same rate seen in May. Meanwhile, Black Book found that trucks decreased 0.8 percent in value during June.
Black Book went on to note that all vehicles are averaging a 12-month depreciation of 16.7 percent.
In June, small pickups had the lowest monthly depreciation at 0.1 percent. Vehicles in the small pickup segment include the Toyota Tacoma, Chevrolet Colorado, GMC Canyon, Nissan Frontier and the Honda Ridgeline. Vehicles in this segment finished June with an average price of $21,328, a 7.3 percent drop from a year ago.
On the opposite end of the spectrum, sub-compact cars saw the largest depreciation during the month at 2.8 percent. Vehicles in the sub-compact car segment include the Chevrolet Sonic, Ford Fiesta, Honda Fit, Toyota Yaris, Nissan Versa, Kia Soul and the Hyundai Accent. Vehicles in this segment finished June with an average price of $6,554, a 22.0 percent decline from a year ago.
Black Book determined the segment with the largest 12-month depreciation currently is prestige luxury cars (down by 25.4 percent). Vehicles in the prestige luxury car segment include the BMW 7-Series, Lexus LS 460, Porsche Panamera, Jaguar XJ, Mercedes Benz S-Class and the Audi A8. This segment finished June with an average price of $34,894, down from $46,781 a year ago.
Over the past three months, editors noticed two segments have shown unchanged value or an increase in overall value: full-size pickups are unchanged, and small pickups have gained 0.2 percent in value.
Sub-compact luxury CUVs represented the truck segment with the largest monthly depreciation in June, dipping by 1.8 percent. Vehicles in sub-compact luxury crossover segment include the Audi Q3, BMW X1, Mercedes Benz GLA Class and the Mini Cooper Countryman. Vehicles in this segment finished the month with an average value of $16,388, an 18.9 percent change from a year ago.
“Falling gas prices in the month of June resulted in pockets of strength in used vehicle valuations,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.
“Pickup trucks and large utilities have been strong so far this year while small cars have continued to drop, but the remainder of 2017 is expected to show differing trends in terms of vehicle retention strength,” continued Goyal, who will be one of the many experts on hand for Used Car Week 2017, which begins on Nov. 13 in Palm Springs, Calif.