Used vehicle values are beginning to buckle as depreciation continues to accelerate, particularly among sedans, according to Black Book’s Oct. 1 Market Insights report.
Overall car segment values decreased 0.39% last week, compared to 0.25% the week before. Overall truck segment values decreased 0.37% last week, compared to 0.39% the week before.
Most sedan segment vehicles experienced similar depreciation, although the highest depreciation came from midsize cars at 0.63%.
Surprisingly, luxury cars had the strongest showing through the week at 0.01% depreciation. One week of low depreciation is mostly a consolation prize for the vehicle segment, however, as it has been underperforming for most of the year.
The highest depreciation within the truck segment came from small pickups and compact vans, two segments that have performed well for most of the year at 0.70% and 0.63%, respectively.
The lowest depreciation among trucks came from full-size vans at 0.08%.
“Used vehicle market strength is waning as depreciation rates increased week over week. Auctions reported that it was harder to receive increased bids,” said Anil Goyal EVP, operations, for Black Book.