Record Auto Sales in 2015 Point Toward Continued Rising of Vehicle Depreciation

According to Black Book® data, the average price of a used vehicle for model years 2010-2014 declined 1.8% during December, 2015. Cars declined -2.0% while trucks declined -1.7% during the month. 

Average pre-recession annual depreciation was continually recorded between -15% and -18%, and Black Book expects 2016 depreciation near -14%. Interestingly enough, trucks finished 2015 with a twelve-month depreciation of -9.2% while cars tallied -18.2%. 

Sub-Compact Luxury CUV’s led all vehicle segments with the highest depreciation on the month at -6.0%. Vehicles in this segment include the BMW X1 and the Mini Cooper Countryman. Vehicles in this segment entered January with an average segment price of $18,039, a -20% drop from a year ago ($22,553).

Three vehicle segments saw a monthly depreciation of -3.2% or greater, the Sub-Compact Luxury CUV’s, Sub-Compact Crossovers and the Compact Vans. Vehicles in the Compact Van segment include the Ford Transit Connect, Nissan NV 200 and Ram C/V. These vehicles finished the month with an average segment price of $10,478, a -22.6% drop from January of 2015 ($13,535).

Full-Size Pickups led all segments with the lowest depreciation at -0.5%. Vehicles in this segment include the Ford F150, GMC Sierra 1500, Chevrolet Silverado 1500, and the Ram 1500. Vehicles in this segment began January with an average segment price of $23,379, a -1.7% change from a year ago ($23,786). 

“Entering 2016, a record year for car sales totaling more than 17 million vehicles, the decrease in used car prices that we are seeing are showing a still-stable used-vehicle market,” said Anil Goyal, Vice President of Automotive Valuation and Analytics for Black Book. “One thing to watch, however, is the discrepancy in depreciation patterns between car and truck segments, as this gap is widening.”

Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland as well as the Canadian Black Book in Toronto.