Luxury vehicles continued to struggle last week, as the segment realized some of the highest depreciation rates among all segments, according to Black Book’s Feb. 13 Market Insights report.
In addition, due to notably poor performance coming from sub-compact luxury crossovers/SUVs, minivans and compact vans, cars also saw lower depreciation rates than trucks last week.
“All luxury segment accumulative depreciation rates, for the first six weeks of 2017, are larger than that of their respective segment averages,” said Anil Goyal, senior vice president of automotive valuation and analytics.
Apart from the prestige luxury and luxury segments, all car segments saw better week-to-week depreciation rates last week, the firm added. Sub-compact and compact cars held the lowest depreciation rates at 0.05% and 0.04%, respectively. While, on the other side of the spectrum, prestige luxury and luxury cars held the highest depreciation rates at 0.69% and 0.42%, respectively. Volume-weighted, overall car values decreased by 0.22% last week, the best weekly retention rate since May 2016, according to Black Book.
Volume-weighted, overall truck values decreased by 0.36%, noticeably higher than the same time last year, when the depreciation rate for trucks stood at 0.14%, according to Black Book. Although sub-compact crossovers actually realized an appreciation of 0.32% last week, this gain was offset by the poor performance of sub-compact luxury crossovers/SUVs, mid-size luxury crossovers/SUVs, minivans and compact vans. Those segments realized depreciation rates of 1.22%, 0.59%, 0.81%, and 1.36%, respectively.