Volume weighted, overall car values decreased by 0.75 percent last week — higher than the average depreciation rate of 0.66 percent observed in the previous four weeks.
Meanwhile, overall truck values decreased by 0.37 percent last week, which was similar to the average depreciation rate of 0.40 percent seen in the previous four weeks.
“Most car segment values continued to decline at a steeper rate last week,” Anil Goyal, senior vice president of automotive valuation and analytics for Black Book, said in the most recent Market Insights report. “As both credit availability and inventories remain high, Labor Day weekend should provide a good boost to clearing inventory.”
Among car segments, near-luxury car values declined the most at 1.26 percent. Sporty cars were next, dropping by an average of 1.16 percent. Subcompact car depreciation came in just under 1 percent, while full-size car values dropped by an average of 0.92 percent. The segment that saw the least depreciation last week was midsize cars at 0.36 percent.
As for trucks, subcompact crossover values fell the most at 1.11 percent. Minivans, at 0.80 percent, saw the next-highest depreciation, while small pickup values dropped by 0.78 percent. Full-size/crossover SUVs remained nearly steady at 0.09 percent.
Looking at 12-month depreciation by segment, subcompact cars, compact vans and luxury cars saw the steepest depreciation rates during the last year at 24.4 percent, 23.5 percent and 23 percent, respectively. Small pickups, full-size pickups and full-size crossovers/SUVs had the lowest depreciation at 8 percent, 10.2 percent and 11.9 percent, respectively.
View from the auction lanes
Black Book editors and personnel attending auctions throughout the country last week shared their sentiments.
“High prices here today; dealers complaining about buying at these rates,” said a lane watcher in Tennessee.
Meanwhile, in Washington, “Prices were down slightly this week from last with pickup trucks leading demand.”
In Pennsylvania, a Black Book rep noted that SUVs were in strong demand.
And in Arizona, “Rental cars did well here today with prices still holding strong.”
A Black Book rep in Texas said, “Dealer lanes were tough today with lots of no-sales.”
Finally, in Wisconsin, “Dealers are buying to fill holes in inventory but that’s all. No extra stock.”