Wholesale prices were on the way down last month due in part to a lessening in demand, but according to Black Book data, depreciation varied widely based on vehicle size.
Black Book reported the average price of used vehicles for model years 2010-2014 declined by 2.6 percent last month, which was up significantly from the 1.5-percent drop seen in September.
Trucks continued to outperform cars, with prices dropping by 2 percent for the month, while cars saw a larger 3.3-percent decline.
Interestingly, two van segments — at opposite ends of the “size” spectrum — saw the most noteworthy price movements.
First up, the cargo minivan segment, which includes models such as the Dodge Grand Caravan, saw the highest depreciation last month with prices dropping by 5 percent. Vehicles in this segment finished the month off with an average segment price of $7,530, which is down 16.3 percent year-over-year when these units were going for an average of $10,739.
On the other hand, the full-size cargo vans saw the lowest depreciation in October, with rates dropping by just 1 percent. This segment, which includes units such as the Mercedes-Benz 2500 Sprinter Vans, were going for an average of $19,608, which is only down 3.7 percent from October 2014.
Other noteworthy price comparisons include:
- Compact car prices dropped by 3.6 percent last month, while compact pickup prices only dropped by 1.1 percent
- Full-size car rates dropped by 3.3 percent, while full-size pickup prices declined by 1.4 percent.
- Compact CUV prices fell by 2.6 percent, while the larger full-size SUV models only took a 1.8-percent hit in October.
“As expected, we’re seeing some of the highest depreciation levels of the year driven largely by lowered demand at wholesale auctions around the country,” said Anil Goyal, vice president of automotive valuation and analytics for Black Book. “We believe this trends will continue through the end of the year and we should finish 2015 with overall depreciation nearing 14.0 percent. It’s important to note that this is still slightly lower than what the industry experienced prior to the recession.”