Volume-weighted, overall car and truck segments both experienced continued softening in values with the overall market decreasing by 0.36% this past week (compared to 0.25% the prior week), according to Black Book’s latest Market Insights report.
Volume-weighted, overall car segment values decreased 0.66% over the last week, an increase in depreciation compared to the 0.37% experienced the week prior.
The small car segments, compact and sub-compact, had the largest car segment declines last week, as demand began to soften in recent weeks with new inventory increasing and consumers continuing to shift their preferences to crossovers.
Premium sporty cars continued to show stability with a minimal 0.04% increase last week, compared to 0.00% the prior week.
When volume-weighting is applied, the overall truck segment (including pickups, SUVs, and vans) values declined 0.19% last week, marginally higher than the previous week decrease of 0.18%.
Both sub-compact and sub-compact Luxury suffered large declines last week. Fuel prices remain low, so these fuel-efficient segments are being passed over by consumers for the larger compact and mid-size segments that provide more utility and passenger space.
Full-size trucks continued to lose steam in the amount of increase this past week. Three weeks ago, the increase was 0.54%, followed by 0.12% two weeks ago, and then this past week the increase was only 0.02%. At the auctions last week, it was observed that some trim levels showed weakening in values and it is expected that this will continue into this week. However, new inventory remains low so it is not expected that values will experience large declines until new supply increases.