Large vehicles to show value strength in 2016
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LAWRENCEVILLE, Ga. –
Vehicles prices at auction fell a bit in January, but depreciation remains low — and analysts expect this trend to continue through the spring and tax season. And price retention is particularly strong in the full-size SUV segment, as gas prices remain unusually low.
According to Black Book, the average price of a used-vehicle for model years 2010-2014 dropped 1.6 percent last month.
Specifically, cars saw prices drop by 1.7 percent in January, while trucks dropped by 1.5 percent for the month.
Full-size SUVs continued to lead all the segments with the strongest price retention in January. Prices only dropped by 0.3 percent last month for the full-size SUVs, perhaps due in part to dropping fuel prices. The segment finished the month with an average price of $25,063, which is down 1.7 percent year-over-year.
“For the third straight month we have seen the lowest depreciation of all segments in full-size crossover/SUVs,” said Anil Goyal, senior vice president, operations for Black Book. “This trend, combined with continued low gas prices, is a sign that larger vehicles may continue to demonstrate relative strength in their value throughout this year.”
On the other side of the spectrum was this trend: For the second month in a row, subcompact luxury CUVs saw the highest depreciation last month with vehicles dropping by a significant 4 percent. The segment ended the month with an average price of $17,314, which is down 21 percent from January 2015.
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One other segment also saw depreciation pass 3 percent: the compact vans. This segment’s prices dropped by 3.6 percent in January to finish the month with an average price of $10,101, which is down 22.8 percent year-over-year.
Here is how the pricing for January broke up by domestic and foreign automakers, according to Black Book data:
- Domestic car prices dropped by 1.4 percent on a monthly basis.
- Domestic truck prices fell by 1.3 percent from December rates.
- Import car prices were down 1.9 percent in January.
- Import truck rates fell by 2 percent last month.
