Seasonal Movement on the Lanes
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 July 4th holiday version of the Black Book Market Insights report shows how smaller and mid-size car segments are continuing to lead with some of the largest depreciation rates seen in a while. Sub-compacts in particular have demonstrated significant depreciation over the last four weeks at -2.87%.
“Fuel prices moved down slightly, and Truck and SUV demand remains high. Nonetheless, weekly depreciation rates are weighed down by ample wholesale volume and seasonality,” said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics.
- Volume-weighted, overall car values decreased 0.54% last week. That’s the highest overall weekly deprecation rate since the first week of 2016.
- Compact and Mid-size Car segments received the highest weekly depreciation rates at -0.83% and -0.81%, respectively.
- In the last month, the Sub-compact segment led depreciation rates at an accumulative adjustment of -2.87%, followed closely by the Compact Cars at -2.83% and Mid-size Cars at -2.39%.
- Volume-weighted, overall truck values decreased 0.37% last week, same as the week prior. That’s two consecutive weekly high depreciation rates in the last three months.
- Compact Luxury Crossover/SUV, Compact Van and Mid-size Luxury Crossover/SUV segments received the highest weekly depreciation rates at -0.79%, -0.70% and -0.67%, respectively.
Specialty Markets Update
Collectibles: The collectible vehicle market continues to be very healthy, with several recent auctions enjoying record attendance and strong results.
Powersports: Prices are up again this month, most likely reaching their peak levels for the year for the Street bike segments, and similar to trends we have seen over the past year and a half, they are up by smaller amounts than their historical averages.
Recreational Vehicles: The wholesale market was mixed last month, with motorized units adding to their impressive run and approaching an all-time high, while towables took a break and declined a bit, although they are still as high as they have been in the past several years.
Heavy-Duty Trucks: At auction, late model heavy duty over the road and regional tractors made a better showing in June to an almost mirror image of April. With several buyer levels bidding, this rally, so to speak, was probably a factor of replacing old equipment to help weather the heat of summer plus some really nice late models showing up at auction.
Medium-Duty Trucks: This past month we saw a smaller rate of decline in the Medium Duty Truck wholesale market. This past month, the 4 to 11 year old models came down on average, $203 or 1.1%.