With the exception or the premium sporty cars, which traditionally see a boost in price closer to the summer months, all car segments are seeing historically expected price declines in the lanes.
That said, according to the latest Black Book Market Insights report, trucks continue to “defy” seasonal patterns, holding strong retention at auction.
Overall, car values fell by 0.53 percent or $65 last week, similar to this time last year when rates fell by 0.48 percent.
On the other hand, trucks only fell by 0.22 percent or $35 in the lanes last week.
For the car segments, all categories saw prices fall by more than a quarter percent in value. The pack was led by entry-level cars, with a decline of 0.82 percent or $56 and entry midsize vehicles, with a drop of 0.81 percent or $75.
This is the 11th consecutive week entry-level cars have underperformed compared to the market as a whole.
“Continued softness is expected during summer months as buyers are pushing prices down on volume-heavy car segments,” said Anil Goyal, vice president of automotive valuation and analytics.
And though the premium sporty cars saw much better retention than the two worst performers, they still lost $103 or 0.27 percent of their value last week.
That said, the premium sporty segment has seen better retention compared to the overall car average for eight weeks in a row.
Trucks are also defying seasonal patterns by holding stronger retention through the early summer weeks, Black Book pointed out.
For example, since May 1, cars have seen prices drop by a total of 3.8 percent, while trucks have only declined by 1 percent, according to Black Book data.
This past week, the compact pickups and midsize pickups saw prices increase by 0.26 percent, while the compact SUV segment saw an increase of 0.16 percent.
These were the only three segments to see prices increase in the lanes last week.
And although a few segments continue to buck trends, the overall industry sentiment still seems to be that of a summer slowdown.
Black Book personnel heard one buyer in the lanes from North Carolina express the following: “Slowing down and prices dropping on average vehicles,” which is in line with market correction for segments that perform particularly well during tax season.