Pricing for car and truck segments weakened heading into the fourth quarter, which is typical this time of year. Crossovers and SUVs led the way with the highest value decline last week — the full-size crossover/SUV segment fell 1.12%.
by Staff
November 1, 2016
Chart courtesy of Black Book.
1 min to read
Chart courtesy of Black Book.
Pricing for car and truck segments weakened heading into the fourth quarter, which is typical this time of year. Crossovers and SUVs led the way with the highest value decline last week — the full-size crossover/SUV segment fell 1.12%.
Overall car segment values, which are volume weighted, decreased 0.80%, which was higher than the depreciation rate of 0.69% seen in the previous four weeks. Mid-size and sporty cars declined by 1.20% and 0.88%, respectively, according Black Book's Oct. 31 Market Insights report.
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“Typical seasonality trend of the higher depreciation in the fourth quarter continue,” noted Anil Goyal, senior vice president of automotive valuation and analytics for Black Book. “Crossover/SUV values, which have been strong all year, are also starting to see steeper declines.”
The overall truck segment values, including pickup, SUVs, and vans, decreased by 0.76%, which was higher than the depreciation rate of 0.57% seen in the previous four weeks.
Past seasonality trends, according to Black Book, show that vehicle depreciation is typically highest in the fourth quarter. This year is looking to be no different, except that retention values are lower this year than what was recorded the previous four years.
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