Two-year-old compact van retention values declined sharply this year, with the values being four-percentage points lower this year for 2014 model-year vehicles in comparison to last year for 2013-MY vehicles.
These retention values have shown steady declines every year since 2012, according to Black Book's Dec. 13 Market Insights report.
The compact van segment is also leading depreciation in all truck segments, with the segment declining by 2.88%. Trucks are also continuing to depreciate more than car segments, according to the report. However, the reported also found that segments across both cars and trucks are showing normal seasonal depreciation trends
Volume weighted, truck values decreased by 0.65% last week, higher than the depreciation rate of 0.50% seen in the previous four weeks. Meanwhile, overall car segment values decreased by 0.64% last week, higher than the depreciation rate of 0.57% seen in the previous four weeks.
“Certain dealers across the country are also pointing to some of the slowest sales all year for trucks,” the report also stated.
Near luxury car, sub-compact car, and luxury car segments declined the most by 1.32%, 1.30% and 1.10% respectively. Full-size crossover/SUV and mid-size luxury crossover/SUV segments followed compact vans with the most depreciation, both declining by 1.50%.
“Wholesale markets show normal depreciation for both car and light truck segments in line with seasonal trends for this time of the year,” Anil Goyal, Black Book's senior vice president of automotive valuation and analytics.