Black Book’s Q3 depreciation rundown

Along with looking at last week’s movements, the Black Book Market Insights report also examined what happened this past quarter. Editors noticed overall depreciation in trucks performed better than cars.
Black Book reported that full-size pickups represented the best-performing segment in the third quarter with 3 percent quarterly depreciation. Conversely, editors pointed out the sub-compact crossover was the worst performing segment with 8 percent quarterly depreciation.
When looking at just this past week, Black Book found that volume-weighted, overall car values decreased by 0.57 percent. This reading was lower than the average depreciation rate of 0.66 percent seen in the previous four weeks.
In car segments, the sporty car, prestige luxury car and compact car segments declined the most, dropping by 1.20 percent, 0.99 percent and 0.82 percent, respectively.
Again volume-weighted, editors noted overall truck values decreased by 0.58 percent last week. This level was higher than the average depreciation rate of 0.43 percent spotted during the previous four weeks.
In truck segments, full-size van, midsize crossover/SUV and full-size pickup segments declined the most, dropping by 1.02 percent, 0.75 percent and 0.74 percent, respectively.
“Broader declines seen in the market last week as segments with larger declines included sub-compact cars, sporty cars, mid-size crossovers and full-size pickups.” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
While depreciation rates for some segments accelerated a bit, activity in the lanes tapered in some places, especially in Texas where Black Book’s representative mentioned, “Lots of no-sales today. Seems like the market has slowed down some.”
In Tennessee, a similar scene unfolded as Black Book’s personnel indicated, “Not a good consignment here today and dealers were slow to buy anything, but overall still a decent sale.”
Dealers at a sale in Florida watched plenty of vehicles go over the block without bidding as the Black Book representative quipped, “Buyers said they were being selective with purchases today.”
In Pennsylvania, the lane behavior was even more specific with Black Book reporting, “Demand seemed to be on anything $10,000 or less in today’s auction.”
Moving out West, the atmosphere in Arizona is the case where “the market trend is still steady and prices still a bit on the higher side.”
And finally in Washington, the lowdown went like this: “Prices down a little, but trucks and SUVs still leading demand in this location.”
Specialty market update
As they often do during this timeframe, Black Book editors shared their assessment of the specialty markets.
—Collectibles: Black Book acknowledged sale prices are down a bit, especially on the exotics that had skyrocketed in the past year or so.
“But the best of the best, especially late-model super cars, are still bringing very good money,” editors said.
—Recreational vehicles: In August, Black Book noticed towables made a big jump in values, and this time it was motorized’s turn.
Editors determined auction volume was up substantially on the motorized side, “which says consigners were making every effort to move units and get them off their books as we head into fall.”
—Powersports: With the arrival of new models from many manufacturers and the end of the summer riding season, Black Book indicated prices have dropped for all of the on-road and watersport categories.
—Heavy-duty: Editors explained the used long-haul and short-haul tractor story remains the same. They added the strength of the construction/vocational segments is helping to stabilize the entire market.
—Medium-duty: Editors shared that they saw both groups of trucks in the medium -duty wholesale market decline at a very similar rate this past month as to the previous month.
This past month, the 4- to 11-year-old models came down on average of $280, or 1.4 percent.