The Black Book Market Insights report for the week of November 5 looks at the continued effects the price of gasoline is having on smaller cars and entry-level cars, which are showing some of the largest declines of the year.
Interestingly, according to Black Book, even though diesel prices also remain low, it is not having a similar impact on diesel trucks. Dealer sentiment from around the country is also pointing toward an escalating view of lowered prices at auction in an effort to reduce inventory levels.
“Gasoline prices decreased again this week, which will continue to push entry-level car values downward. The same can be said for diesel prices at the pump, but diesel trucks still continue to do well on the block,” said Anil Goyal, vice president of Automotive Valuation and Analytics at Black Book.
Volume-weighted, overall car values decreased by 0.91 percent last week. This is the largest depreciation rate seen this calendar year. The compact car and entry mid-size car segments saw the largest depreciation this past week, with decreases of 1.38 percent.
Volume-weighted, overall truck values decreased by 0.69 percent last week. This is the largest depreciation rate seen this calendar- year. Compact pickup and Compact SUV saw little to no change this past week with 0 percent and -0.01 percent, respectively.
Finally, Black Book included its specialty market report and discussed medium-duty trucks.
"In October we saw the Medium Duty segment take a much steeper downturn," said Bret Swanson, editor, medium-duty truck data. "We see that in September, the three to 10-year-old trucks dropped an average of $349 or 1.7%. In October, this same group had an average decline of $613 or 3.0%. The one- and two-year old models followed a similar pattern. In September, this group declined on average, $644 or 1.4%. For October, this group had an average decline of $1776 or 3.9%."