Vehicle depreciation begins ‘normal’ seasonal pattern
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LAWRENCEVILLE, Ga. –
The used-car market is now hitting “normal depreciation patterns” that should amplify in 2019, according to a recent analysis from Black Book.
Used vehicles from model years 2013 through 2017 saw their average prices dip 1.9 percent in October, the biggest decrease since January, the company said.
There was a 2.4-percent decrease in car prices and a 1.6-percent drop for trucks.
This followed a static September, when eight segments either showed increases or remained steady.
But this past month showed declines across the board. The lowest level of decline was for the subcompact crossover (down 0.4 percent), while the highest depreciation was for sporty cars (3.3 percent).
“It appears as though we’ve settled into normal depreciation patterns for the remainder of the year. Our residual forecasts reflect depreciation increasing next year,” Black Book executive vice president of operations Anil Goyal said in a news release.
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“Increasing interest rates, potentially higher incentives on new vehicles and rising used supply levels, particularly in the compact SUV segment will be key factors driving the trend in 2019,” he said.
