U.S. used car values took a slight dive in January — more so than trucks, according to Black Book.
The news is anything but shocking as industry experts have repeatedly pointed to consumers demonstrating less interest in sedans and other cars, while showing a growing preference for crossovers (SUVs) and trucks.
The car segment (Full-Size Car, Sub-Compact Car, and Luxury Car) experienced the biggest drop, showing a decreased 0.69% or $70, based on a 2019 Black Book Market Insights report. The numbers represent the average volume-weighted wholesale average values of 2010-2016 models from December 28, 2018 to January 4, 2019.
Trucks on the other hand (pickups, SUVs, and vans), saw an average decrease of 0.54% or $84 last week. The Sub-Compact Luxury Crossover and Full-Size Luxury Crossover/SUV segments were the two worst performers during this period.
The annual depreciation of used vehicles (2-6 years old) in 2018 was -12.4%, compared to -13.2% in 2017 and -17.3% in 2016.
“In the first week of the new year, values of used vehicles continued to decline on pace with the trend seen in December,” said Anil Goyal, Executive Vice President, Operations, for Black Book.
“The previous year ended with the lowest depreciation rate in three years.”
The depreciation rate in 2018 was better than expected as tax cuts, strong economic and job growth contributed to a greater demand from consumers for used vehicles.
