It was status quo for car deprecation last week, while truck values fell at a slower pace than the week prior, according to Black Book’s weekly Market Insights report.
Volume weighted, overall car segment values (models years 2008-2014) decreased by 0.78 percent last week, on par with the previous week’s 0.77 percent, while truck segments prices decreased by 0.32 percent, better than the prior week’s 0.48 percent.
“Wholesale values of car segments continue their decline, now at the fastest pace seen this year, while most truck and SUV segments show stability,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
Among trucks, subcompact crossovers, small pickups and minivans declined the most by 2.14 percent, 1.22 percent and 0.94, respectively. Meanwhile, compact vans, full-size vans and compact luxury crossover/SUVs saw lower depreciation at zero percent, 0.16 percent and 0.14 percent, resprectively.
Among cars, prestige luxury models, subcompacts and midsize cars declined the most, at 1.02 percent, 0.94 percent and 0.92 percent, respectively. Sporty cars saw the lowest depreciation at 0.48 percent.
The report puts a focus on luxury cars, particularly 2-year-old models. Cars in this class are showing notably weaker retention compared with previous year models in late summer. However, luxury cars (down 0.61 percent) fared slightly better last week compared with other luxury segments.
In general, values of 2-year-old (model year 2014) luxury cars are trending more than 3 percentage points lower than the prior year’s retention for similar vehicles at this point in their life cycle, according to the report.
Sentiment from the lanes
Each week, representatives from Black Book attend dozens of auctions throughout the country. Below are some of their most recent insights.
“Midsize luxury and full-size SUVs were both in demand at today’s sale,” commented a lane watcher in Nevada.
“Buyers looking for low-mileage clean history units at this location,” said a rep in Florida.
In Texas, “trucks are still doing well but cars are still depreciating at a higher rate.”
It was quality over quantity in Tennessee, where there were “not a lot of dealers here today, but those that were came to buy.”
A Black Book rep in Pennsylvania noted, “Not many trucks were available at today’s sale but bidding was strong with a high sales percentage overall.”
Finally, in Michigan: “Retail is still a bit weak around here but is picking up somewhat since school started back.”