Wholesale vehicles averaged a 12-month depreciation of 13.2% in 2017, compared to a 12-month depreciation of 17.3% in 2016, according to Black Book.
The drop in depreciation was largely due to the performance of the wholesale truck segment, which saw a 12-month depreciation of 10.8% in 2017. Meanwhile, the car segment experienced a 12-month depreciation of 16.2%.
For full-year 2017, two segments tied for the lowest depreciation: compact vans and small pickups, both at 7.2% depreciation for the year. Prestige luxury cars realized the highest full-year depreciation at 23.4%.
Looking at domestic versus import, both domestic cars and trucks experienced lower depreciation than their import counterparts. Twelve-month depreciation for domestic cars came in at 14.2% in 2017, while import cars experienced a 12-month depreciation of 17.0%. Domestic trucks depreciated 8.9% through the year while import trucks depreciated 14.4%.
“Vehicle values ended the year with an easing of depreciation during the month of December,” said Anil Goyal, senior vice president of automotive valuation and analytics. “Between a stronger-than-expected spring selling season that lasted into early summer and the two hurricanes during the fall that required a healthy dose of vehicle replacement activity, we saw lower overall depreciation this year compared with 2016.”