While most car segments continue to face generally higher depreciation compared with trucks, according to Black Book, this past week that it’s not just smaller cars feeling heavier depreciation right now.
As an example, this week’s Black Book Market Insights report shows Full-Size Cars and Upper Midsize Cars also showing larger-than-average depreciation on the 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, VP of Automotive Valuation and Analytics.
Overall, the volume-weighted car values decreased by 0.62 percent last week, 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 more than 0.75 percent. Sporty cars and luxury cars performed relatively better.
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.