Car Segment Depreciation Slowed Last Week

Welcome to this week's edition of Black Book Market Insights, with in-depth analysis of used car and truck valuation trends and insights straight from the auction lanes. Click here to download the full report.

 

This week’s Black Book Market Insights report shows car and truck segments depreciating at the same level, down by -0.25%. Out of each, Compact Vans performed the best, increasing their value by +0.07%, while Sporty Cars saw no price declines during the week.

 

“Overall, the wholesale markets performed well last week. Weaker spots were seen in the Sub-Compact Crossover and Compact Crossover/SUV segments,” said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics.

 

  • Volume-weighted, overall car segment values decreased by 0.25% last week, lower than the average weekly decrease of 0.39% in values over the previous four weeks.
  • Prestige Luxury Car, Mid-Size Car, and Full-Size Car segments declined the most by 0.52%, 0.45%, and 0.42%, respectively.
  • Volume-weighted, overall truck segment (including pickups, SUVs and vans) values decreased by 0.25% last week, higher than the average weekly decrease of 0.18% in values over the previous four weeks.
  • Sub-Compact Crossover, Sub-Compact Luxury Crossover and Compact Crossover/SUV declined the most by 0.51%, 0.47%, and 0.44%, respectively.

 

New Vehicle Incentives: Percent of Typically Equipped MSRP

New vehicle incentives started rising sharply in late 2016 and have stayed up in 2017. With new inventories at nearly 4.2 million, a 12-year high, we expect incentives to remain elevated.

2010: 9.7%

2011: 8.6%

2012: 8.2%

2013: 8.3%

2014: 9.0%

2015: 9.4%

2016: 10.5%

2017 YTD: 11.0%

 

 

Click here to download the full report.

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