The truck segment outperformed cars and luxury car depreciation rates remained high last week, according to Black Book’s Feb. 20 Market Insights report.
Volume-weighted, average car wholesale values depreciated by 0.46% last week, more than double the depreciation rate of 0.22% the segment saw the week prior. Mid-size cars, prestige luxury cars and premium sporty cars experienced the highest depreciation rates at 0.82%, 0.58% and 0.58%, respectively. Compact cars experienced the lowest depreciation rate of 0.25%.
“The market sentiment in auction lanes remains optimistic. Luxury vehicles show higher depreciation than mainstream brands,” said Anil Goyal, senior vice president of automotive valuation and analytics.
Volume-weighted, overall truck segment wholesale values decreased by 0.27% last week, better than the depreciation rate of 0.36% the segment saw the week before. Full-size crossovers/SUVs and full-size pickups realized the highest depreciation rates of 0.44% and 0.38%, respectively. Sub-compact crossovers and compact vans were flat last week.
Looking at last month’s depreciation trends by segment: full-size pickups, small pickups, mid-size cars, and full-size crossovers/SUVs were the month’s best-performing segments. All four of those segments shared the month’s lowest depreciation rate of 1.1%. Premium sporty cars, prestige luxury cars, near luxury cars and luxury cars had the month’s highest depreciation rates of 2.8%, 2.8%, 2.4%, and 2.3%, respectively.
Originally posted on Auto Rental News