Depreciation trends stabilized to close out 2016, with depreciation rates for all cars and trucks falling into seasonal patterns.
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Cars and truck segments both had the smallest weekly rate of depreciation since summer, with truck values decreasing by 0.3% and cars depreciating by 0.42%, which was consistents with the prior week’s depreciation rate.
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Five model years of used vehicles depreciated 2.3% in November, which showed a slight improvement from October and remained in line with the typical weakening of values at this time of year, according to Black Book data.
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Depreciation for 1- to 5-year-old vehicles saw a significant increase to 2.9% for October from the 2.3% September rate with passenger cars seeing greater weakness, according to Black Book.
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A rising supply of used pickups coupled with aggressive pricing for new models is expected to cause a weakening in values in the wholesale market, according to new data from Black Book.
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Full-size pickup truck retention rates for model-year vehicles older than two years showed a slight decrease this year after steadily increasing for the last five years.
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Used vehicles from the 2011 to 2015 model years depreciated 2.3% in September, a slight decrease over August's 2.4% depreciation rate, reports Black Book.
Read More →Cars showed better retention in the last week of September than in the previous four weeks, while trucks depreciated more than they have during that same timeframe.
Read More →The car segment retained its wholesale value well last week, as the wholesale value of 2008-2014 model-year cars decreased by 0.68% last week.
Read More →Black Book released a white paper designed to help remarketers and auto lenders identify when and where used leasing makes sense for a portfolio.
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