Prices of used vehicles from model years 2011-2015 depreciated by an average of 2.9 percent in October — steeper than the average 2.3 percent depreciation seen in September.
According to Black Book, domestic cars are exemplifying ramped-up depreciation that is typically seen going into the fourth quarter. During the last three months, domestic cars have dropped nearly 10 percent in value, averaging more than 3 percent per month.
Year-over-year, domestic cars are down 18.2 percent.
Overall, cars saw lower retention in October, finishing the month down 3.2 percent, compared with 2.6 percent in September. Year-over-year, car segments as a whole were down 19.2 percent last month.
Trucks, meanwhile, finished the month down 2.6 percent. Year-over-year, truck segments as a whole were down 15 percent last month.
And all vehicles are averaging 12-month depreciation of 16.8 percent.
“We expect pockets of vehicles to see accelerated depreciation as the year comes to a close,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “Most car segments certainly fall into this category, but we’ll be paying special attention on those truck and utility segments that begin to show higher depreciation.”
Compact cars saw the highest monthly drop in value, down 3.6 percent. Vehicles in this segment, which include Honda Accord, Ford Focus and Hyundai Elantra, finished October averaging $8,393, a 19.8-percent drop from a year ago.
Small pickups, meanwhile, saw the strongest retention, dropping 0.6 percent from September. Vehicles in this segment, which include Toyota Tacoma, Nissan Frontier and Chevrolet Colorado, finished October averaging $19,383, an 8.1-percent drop from a year ago.