The Black Book Market Insights report for the week of December 15 looks at end-of-year trends, which are showing the usual December slowdown in auction activity. The report also looks at broader depreciation patterns for the year across major segments, illustrating the disparity in depreciation between small cars and larger trucks.
“Depreciation rates start to stabilize across most segments as auction activity slows at this time of the year. Looking at YTD trends, smaller cars experienced a larger percentage drop than larger cars this year, driven by higher used supply but lower demand due to low gasoline prices,” said Anil Goyal, VP of Automotive Valuation and Analytics for Black Book.
Volume-weighted, overall car values decreased by 0.43 percent last week. This is lower than the average depreciation rate of 0.66 percent seen in the previous eight weeks. Car segments that showed the highest declines last week include Prestige Luxury Car, Full-Size Car, and Sporty Car, declining by 0.92 percent, 0.75 percent and 0.59 percent, respectively.
Volume-weighted, overall truck values decreased by 0.47 percent last week. This is lower than the average depreciation rate of 0.59 percent seen in the previous eight weeks. Vans declined the most over the past week in truck segments with Mini Van Cargo, Full-Size Cargo Van and Full-Size Passenger Van, declining by 1.9 percent, 1.28 percent, and 1.28 percent, respectively.