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Wholesale compact van values experienced the biggest decline at auction last week, depreciating 1.03% week-over-week.
Seasonal depreciation patterns are expected to take hold through the rest of the year, with vehicle values declining on a wider scale.
This heavy depreciation was in large part driven by rising no-sales at several auto auctions.
Overall, car segment values were down 0.44% last week, compared to a 0.54% decline the week prior. Truck segment values were down 0.39% last week, compared to 0.37% the week prior.
Prior to 2018, sedans at auction had experienced three years of consecutive value declines. For sedan-heavy fleets, this may have meant an impact to total cost of ownership for those vehicles, as profits from remarketing them would have suffered. Now companies with sedan-heavy fleets may be finding that a window of opportunity to remarket those vehicles for better profit has emerged.
Wholesale values saw a heavy decline last week, with sporty cars, minivans, and small pickups leading weekly depreciation.
Through this integration, CDK dealer customers will realize stronger profit potential with a more precise valuation process during trade-ins for specialty vehicles, the companies noted.
While luxury vehicles continue to struggle, overall vehicle values held steady last week, according to Black Book’s Oct. 8 Market Insights report.
Overall used vehicle values were strong in September, and five key segments played a key role in that strength, according to Black Book’s monthly Used Vehicle Retention Index.
Overall car segment values declined 0.25% last week, compared to 0.2% the week prior. These two weeks of accelerated depreciation follow more than two months of strong car segment values.