LAWRENCEVILLE, Ga. – What Black Book representatives heard dealers say in the lanes going into the Fourth of July holiday reinforced the latest data editors uncovered.
The midsummer holiday version of the Black Book Market Insights report showed how smaller and midsize car segments are continuing to lead with some of the largest depreciation rates seen in a while. Editors indicated subcompacts, in particular, have demonstrated significant depreciation over the last four weeks, sliding by 2.87 percent.
“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, Black Book’s senior vice president of automotive valuation and analytics.
Meanwhile in Pennsylvania, Black Book’s lane personnel spoke to dealers and relayed, “My sources tell me that SUVs and trucks are where it’s at. Says no one cares about the price of gas at the moment.”
Volume-weighted, Black Book determined overall truck values decreased 0.37 percent last week — the same movements as the prior week. Editors also pointed out that’s two consecutive weekly high depreciation rates in the last three months.
Black Book added that compact luxury crossover/SUV, compact van and midsize luxury crossover/SUV segments received the high weekly depreciation rates at 0.79 percent, 0.70 percent and 0.67 percent, respectively.
On the car side looking at the volume-weighted information, Black Book noticed overall car values decreased 0.54 percent last week. That’s the highest overall weekly deprecation rate since the first week of 2016.
Editors mentioned the compact and midsize car segments received the highest weekly depreciation rates at 0.83 percent and 0.81 percent, respectively.
As previously noted, Black Book determined that in the last month the sub-compact segment led depreciation rates at an accumulative adjustment of 2.87 percent, followed closely by compact cars at 2.83 percent and midsize cars at 2.39 percent.
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