The average price of a used vehicle for model years 2013–’17 fell by 1.9% during October, a noticeable drop compared to the previous month when values were unchanged, according to Black Book data. The 1.9% change was also the largest monthly price decline dating back to January.
Car values fell by 2.4% and trucks were down 1.6%. Unlike September, when eight segments either retained their value or saw increased, every truck and car segment saw a decline in October. Subcompact crossovers saw the lowest depreciation at -0.4%. Vehicles in this segment finished the month with an average segment value of $11,926, an 8.9% decline from a year ago.
Sporty cars saw the largest depreciation on the month at -3.3%. Vehicles in this segment finished October with an average segment value of $13,529, a 9.1% year-over-year decline. Two other segments finished the month at -2.5% depreciation or greater: full-size cars at -2.6% and minivans at -2.5%.
Subcompacts were one of five segments to suffer a monthly depreciation of 1% or less, joined by full-size SUVs and CUVs, full-size vans, and compact vans (-0.9%) and subcompact luxury CUVs (-0.6%).
“It appears as though we’ve settled into normal depreciation patterns for the remainder of the year. Our residual forecasts reflect depreciation increasing next year,” said Anil Goyal, Black Book’s executive vice president of operations. “Increasing interest rates, potentially higher incentives on new vehicles and rising used supply levels, particularly in the compact SUV segment, will be key factors driving the trend in 2019.”
This story originally appeared on Auto Dealer Today, another Bobit Business Media publication.