Trends shifted a bit in the lanes this past week, with a reversal of the pattern of depreciation the industry has come to expect this year.
Last week, according to the latest Black Book Insights report, the car segments averaged lighter-than-normal depreciation, while trucks saw prices drop at a more rapid rate.
As far as price movement goes, “A broad drop in values across all car segments was led by the entry-level cars. pickup trucks and full-size van truck segments continue to hold values well,” said Anil Goyal, vice president of automotive valuation and analytics.
Overall, car prices fell by an average of just 0.35 percent or $41. Black Book analysts pointed out this number is lower than the depreciation rates seen in the previous four weeks.
The truck segments saw average depreciation of 0.31 percent or $50, which is a bit higher than trends seen over the past month.
Taking a look at the car price movement, all the segments Black Book tracks saw prices drop by over 0.20 percent. The entry-level car segment saw the highest depreciation once again with a drop of 0.79 percent or $52.
And interestingly, although the sporty car segment has been one of the best performers earlier this summer, these models saw an average drop of 0.43 percent or $68 last week.
The best performing car segment in the lanes last week was the entry midsize cars, which saw prices slide by 0.21 percent or $19.
On the truck side of the market, depreciation picked up a bit, but some of the usual strong performers continued to lead the pack.
For example, the compact pickups were the only segment to see an increase in price last week; rates for this segment were up by 0.30 percent or $44.
And both pickups trucks and the full-size van segments held their values well. For example, the full-size pickups saw a drop of just 0.14 percent or $16, while prices for the full-size van cargo and full-size van passenger segments stayed consistent week-over-week.
The worst performing truck segment last week was the full-size CUV group, which saw prices drop by 0.68 percent or $112.
Black Book editors also pointed out last week in the lanes, dealers from around the country were “finding it harder to spot clean-condition vehicles at auction.”
This assertion was backed up by dealer and buyer comments at auction.
For example, Black Book editors overheard a buyer from Tennessee say there were an “above normal amount of average and rough cars here today, so sales were a bit slow,” while another buyer from the same state noted, “Not a lot of clean cars at this location today, but dealers were paying good prices for what did sell.”