Used Luxury Cars in Low Demand at This Time of the Year
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 increased depreciation in luxury vehicles. Trucks as a whole had a greater average depreciation this week as compared to cars. However, two vehicle segments within the truck segment had solid retention and even increased their values from last week.
“Active sales in most locations as some dealers sell off inventories before the end of the year while others buy selectively. Luxury vehicle prices dropped the most last week,” said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics.
- Volume weighted, overall car segment values decreased by 0.42% last week, lower than the depreciation rate of 0.63% seen in the previous four weeks.
- Prestige Luxury Car, Luxury Car and Premium Sporty Car segments declined the most by 1.32%, 1.07% and 0.73%, respectively.
- Volume-weighted, overall truck segment (including pickups, SUVs and vans) values decreased by 0.53% last week, similar to the depreciation rate of 0.54% seen in the previous four weeks.
- Full-Size Crossover/SUV and Full-Size Luxury Crossover/SUV segments declined the most by 1.24% and 1.08%, respectively
Average Incentive Spend by Segment
Incentive spending has been rising steadily this year but the level varies by segment. Car segments have the highest incentive spend as percent of typically equipped retail price.
Author: Black Book
Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland. For more information, please visit BlackBookAuto.com or call 800.554.1026.