Larger Than Average Depreciation Rates

July 28, 2015
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It’s not just smaller cars feeling heavier depreciation right now. According to Black Book's Market Insights report, full-size cars and upper mid-size cars are also showing larger-than-average depreciation this week.

“Depreciation rate on car segments picked up a little. While trucks continued to perform better, a couple of previously strong segments experienced a market correction,” said Anil Goyal, Vice President of Automotive Valuation and Analytics.

SOURCE: Black Book
SOURCE: Black Book

Overall, the volume-weighted car values decreased by 0.62 percent the week of July 20, higher than the depreciation rate seen in the previous four weeks.

Interestingly, segments across different sizes i.e., Full-Size Car, Upper Mid-Size Car and Compact Car dropped in value by over 0.75 percent. Sporty cars and luxury cars performed relatively better.

SOURCE: Black Book
SOURCE: Black Book

Overall, the volume-weighted truck values decreased by 0.27 percent last week, at the average depreciation rate seen in the previous four weeks. Compact Pickup and Full Size Cargo Van segments experienced a market correction after several weeks of strong value retention.

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