The beginning of tax season saw stronger sales at auction, especially for mainstream car segments. Mid-size cars led the way in terms of value retention in the car segment, while minivans, full-size vans and small pickups saw no change last week.
Subcompact crossovers joined the full-size vans and minivans as the truck categories registering the steepest declines in value last week, while subcompact cars joined full-size cars and sporty cars as the depreciation leaders in the car segment.
Premium sporty cars recorded the largest decrease in value in October, while prestige luxury cars have registered the highest depreciation over the course of the last 12 months.
The last remaining replacement activity stemming from hurricanes Harvey and Irma drove continued vehicle value stability and shopping demand in October, with the firm’s index rising to 114.6 in October.
Depreciation increased for both cars and light trucks, with car segments recording the highest weekly depreciation in seven weeks. Prices in the Houston-area, however, remain elevated, according to the firm.
Fueling the increase was vehicle replacement activity related to Hurricane Harvey, which began last month. According to Black Book, compact cars, compact crossover SUVs, full-size cars, and mid-size cars each realized significant month-over-month increases within the index.
The firm's white paper sheds light on the disconnect between consumers and many dealers when it comes to trade appraisals. It also explores what’s at stake when a consumer introduces a trade-in as a part of the transaction.
The index has remained unchanged or moved positive in three of the last four months, according to officials. Posting noticeable gains in their respective segment indexes were full-size cars, full-size pickups, luxury cars, and near-luxury cars.
The price of cars dropped 1.8%, while trucks recorded a 0.8% decline in value for the month of June. Small pickups registered the lowest monthly depreciation, while subcompact cars recorded the largest depreciation in June.
The index’s rise in June was due in large part to falling gas prices, which helped drive the sale of used trucks, crossovers and SUVs. The downside of falling gas prices was the continued acceleration in depreciation for subcompact and compact cars.
