Depreciation slows as fall approaches

The fall selling season is approaching, and depreciation trends are slowing as we leave the summer months behind.
According to the latest Black Book Market Insights report, car prices fell by just 0.37 percent or $42 last week, while trucks saw a slight 0.13 percent or $21 decline.
"Depreciation slowed last week as compact and entry level cars took a breather and most truck segments held their value,” said Anil Goyal, vice president of automotive valuation and analytics.
Black Book editors pointed out a variety of vehicle segment saw a “mild change” from their previous depreciation patterns.
For example, depreciation for compact and entry level cars finally slowed. Entry level cars saw a drop of 0.25 percent or $16, while compact cars droped by just 0.10 percent or $8, bucking strong price decline trends seen throughout the summer for these segments.
Luxury level cars also performed better, showing their smallest price decline in nearly six months. This segment saw a 0.18 percent or $36 drop last week in the lanes.
On the other hand, full-size cars didn’t perform quite as well, dropping by a significant 0.87 percent or $80.
Moving over to highlight the truck segments, which continue to perform well at auction, Black Book pointed out depreciation for compact pickups and full-size SUVs along with their weekly adjustments have been less than the overall truck segment average for six consecutive weeks now.
Compact pickups saw prices drop by just 0.06 percent or $8, while full-size SUVs impressed with prices only down by $1.
Depreciation is slowing as we approach fall, but prices were still on the way down in August.
Overall, according to Black Book data, the average price of a used vehicle for model years 2010-2014 fell by 1.6 percent in August, a slightly larger decline than the 1.3-percent drop seen in July.