Despite some slight surges in pricing last week, Black Book shared new data this week that shows additional truck segments may be feeling more pricing pressure, resulting in many trucks holding their values less than they have in previous years.
Year to date, Black Book indicated all truck segments have performed worse in comparison to the same time last year when looking at value retention. The best performing segment with lowest depreciation this year to date is the full-size crossover/SUV, which has dropped by 0.20 percent YTD compared to a dip of 0.12 percent during same time last year.
Here are some of the worst-performing truck segments in 2016 versus same time 2015:
• Full-size vans (-0.39 percent in 2016 versus +0.05 percent in 2015)
• Compact crossover/SUV (-0.26 percent versus +0.03 percent in 2015)
• Full-size pickup (-0.35 percent in 2016 versus +0.02 percent in 2015)
• Small pickups (-0.28 percent in 2016 versus -0.04 percent in 2015)
“Clearly, the sales success and consumer demand that trucks have enjoyed over the last few years will eventually catch up and we’re beginning to feel some of this tide turning in 2016,” said Anil Goyal, Senior vice president of automotive valuation and analytics for Black Book.
“We’re beginning to see more of this volume return to the wholesale market, which is placing pressure on truck retention strength,” Goyal continued.
However, this week’s edition of Black Book Market Insights mentioned some information counter to what the year-to-date trends revealed.
Analysts noticed five truck segments including subcompact crossover, compact crossover/SUV, midsize crossover/SUV, sub-compact luxury crossover and small pickup increased in value by 0.18 percent, 0.07 percent, 0.16 percent, 0.08 percent and 0.11 percent, respectively.
Black Book also noted when looking at the volume-weighted data, overall truck values changed little last week. The average depreciation rate in truck segments came in at 0.27 percent in the previous eight weeks.
Meanwhile for cars, Black Book indicated that the volume-weighted analysis showed overall car values decreased by only 0.10 percent last week. This rate as much better than the average depreciation rate of 0.23 percent seen in the previous eight weeks.
Analysts noticed full-size cars and mid-size cars were the only two car segments with an increase in value of 0.18 percent and 0.16 percent, respectively. The prestige luxury car segment declined the most at 0.79 percent.
“The used-car market showed broad strength in the market last week,” Goyal said.
The latest Black Book Market Insights also contained some dealer perspectives gathered by the company’s on-site personnel.
Black Book recapped that a sale had a Pennsylvania dealer saying, “Buyers in this location seem to have plenty of money and are spending. Everything is selling well today.”
Another dealer from Pennsylvania echoed that sentiment to Black Book, saying “Most dealers indicated that the need for vehicles was great and even though prices were high, they were still buying.”
Meanwhile a dealer from Minnesota told Black Book, “This week there seemed to be an above normal rate of availability with very good dealer attendance.”
A Tennessee operator who had been scouring the lanes noted, “Not a great selection here today with prices a little lower than yesterday’s auction.”
Out West, a Nevada dealer added, “At today’s auction, performance, sporty cars, midsize and full-size trucks were in demand.”
Finally, the weather impacted action in the lanes when a dealer from Michigan spoke with Black Book, saying, “Lots of wind and rain today so not a very good sale.”