Vehicle depreciation rates appear to be improving, according to this week’s Used Car Market Insights report from Black Book.
“The depreciation rates on used vehicles improved a little last week,” said Anil Goyal, Executive Vice President, Operations. “Bidding in auction lanes was strong ahead of President’s Day.”
The report reveals that overall car retention is slightly stronger than trucks. Between February 8-15, the volume-weighted, overall car segment values decreased by 0.37% or $36. In comparison, the market values during the previous four weeks had dropped an average of 0.56%. (The values were pulled from data that considers model year 2010-2016 vehicles.)
The Luxury Car and Sporty Car segments experienced the biggest decline with values decreasing 0.64% ($111) and 0.61% ($84), respectively. “Near-luxury cars have seen a gradual decline in retained value over the last several years,” said Black Book in its report. “Currently, the Model Year 2016 vehicles in this segment are valued at 44.8% of original typically-equipped MSRP.”
For the volume-weighted, overall truck segment, which includes pickups, SUVs, and vans, the values decreased by 0.38% or $57 last week. To compare, the market values from the previous four-week period dropped an average of 0.48%. In this category, the Compact Luxury Crossover/SUVs experienced the biggest drop thanks to a decline of 0.95% ($170).
Other segments that experienced decreases in values include the Sub-Compact Crossover category with a decrease of 0.84% ($97); Sub-Compact Luxury Crossovers with an average drop of 0.82% ($134); and Mid-Size Luxury Crossover/SUVs with a decrease of 0.78% ($149).
