GAINESVILLE, GA - The Black Book rolling three-month average for the period ending Nov. 30, 2008, reflected increased depreciation levels in nearly every market segment of two-year-old (2006 Model-Year) vehicles. The segments with the best (smallest) depreciation were full-size vans/wagons (-4.6 percent), full-size (-4.8 percent) and mid-size pickups (-6.5 percent), and full-size SUVs (-6.9 percent).
“It’s not really surprising that these vehicles were the best in retention, based on the current lower level of fuel prices, the historic overall popularity of pickups and SUVs, and how much many of these models had already depreciated,” said Ricky Beggs, VP & managing editor of Black Book.
On the opposite end of the depreciation scale, the segments with the worst (largest) levels of depreciation during the past three months included entry level cars (-19.9 percent), minivans/wagons (-16.8 percent), compact cars (-15.6 percent), prestige luxury cars (-15.3 percent), and upper mid-size cars (-14.1 percent).
“Just as decreasing fuel prices helped the segments with the best retention, they adversely affected the worst performers, as consumers’ interest in high fuel economy vehicles has waned somewhat. The very tight credit and slower economic conditions have really affected the higher end luxury cars in recent weeks,” Beggs said.
Looking exclusively at November, many segments that had previously taken the largest annual depreciation, but not yet rebounded, recouped some of their lost value. Compact pickups (-3.1 percent), full-size vans/wagons (-3.2 percent), full-size cars (-4.9 percent), and luxury SUVs (-5.2 percent) have done very well during the last month. It is also understandable that the more economical units that increased the most during the spring and summer months during the surging gas prices are now taking some of the bigger hits and corrections, such as entry cars (-14.7 percent), compact cars (-10.3 percent), compact SUVs (-8.6 percent), and upper mid-size cars (-8.5 percent).