Depreciation Slower in Sub-Compact Cars 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 how car segments, particularly Sub-Compact Cars, retained their values better compared to other car segments. The report also spotlights Compact Vans, which are showing falling retention rates.
“Overall depreciation rates for both cars and trucks remained consistent with the trends seen in the previous six weeks. Depreciation on sub-compact cars slowed last week after steeper declines earlier.”said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics.
- Volume weighted, overall car segment values decreased by 0.68% last week. This is similar to the depreciation rate of 0.67% seen in the previous six weeks.
- Sub-Compact Car, Premium Sporty Car, Mid-Size Car and Compact Car segments declined the least by 0.11%, 0.38%, 0.51% and 0.52%, respectively.
- Volume-weighted, overall truck segment (including pickups, SUVs and vans) values decreased by 0.39% last week. This is similar to the depreciation rate of 0.44% seen in the previous six weeks.
- Compact Van, Minivan and Full-Size Crossover/SUV segments declined the most by 1.20%, 1.08%, and 0.80%, respectively.
Sub-Compact Car Retention Rate Trend
The chart above shows that the retention rates of sub-compact cars have steadily declined in the past four years. For 2013 MY, the retention, two years later in September 2015 for Sub-Compact Car segment was 52%. In comparison, for 2014 MY, the retention in September 2016 has dropped by 8 points to 44%.
