The vehicle valuation firm said the depreciation rate will rise from 17.3% in 2016 to 17.8%, while Fitch said Auto ABS performance will continue to slow in 2017 as losses slowly rise to more normalized levels.
Luxury vehicles continued to struggle last week, as the segment realized some of the highest depreciation rates among all segments, according to the vehicle valuation firm.
While the truck segment realized its best week in terms of vehicle depreciation last week, values for used luxury cars tumbled, according to Black Book’s Jan. 31 Market Insights Report.
For model years 2008-2014, compact cars realized a wholesale value decline of 0.11% — the lowest level among all small cars. Alternatively, prestige luxury cars and subcompact cars realized the highest wholesale-value declines, with depreciation of 0.69% and 0.64%, respectively.
Small cars (model-year 2008-2014) are making a comeback to open the year, and Black Book believes the segment could be in for a good spring.
Depreciation trends stabilized to close out 2016, with depreciation rates for all cars and trucks falling into seasonal patterns, Black Book reported this week.
The pendulum finally swung last week, with trucks showing higher depreciation than cars for the first time this year, according to Black Book.
For the car segment, wholesale values decreased by 0.56% last week, an improvement over the 0.62% decrease the segment realized the week before. On the truck front, wholesale values decreased by 0.31%, less than the prior week’s depreciation rate of 0.59%.
Volume weighted, overall car segment values decreased by 0.46% the week of Nov. 4, which was lower than the 0.7% depreciation rate recorded during the four weeks prior. For the truck segment, values decreased by 0.34%, slightly lower than the 0.58% rate recorded during the previous four weeks.
Both the car and truck segments experienced an overall reduction in depreciation during the week of Oct. 28, with car and truck wholesale values decreasing by 0.53% and 0.58%, respectively, vs. 0.76% and 0.80% the previous week..
