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 Market Insights Report looks at the continued seasonality of current market trends, with cars declining more than trucks. However, a look at the bigger picture shows that the depreciation rate in 2018 was significantly better than expected as tax cuts, strong economic and job growth contributed to high demand for used vehicles. The annual depreciation of used vehicles was only 12.4% in 2018.
“In the first week of the new year, values of used vehicles continued to decline on pace with the trend seen in December. The previous year ended with the lowest depreciation rate in three years,” said Anil Goyal, Executive Vice President, Operations, for Black Book.
- Volume-weighted, overall car segment values decreased by 0.69% last week. In comparison, the market values decreased by 0.64% on average during the prior 4-week period.
- In car segments, the Full-Size Car, Sub-Compact Car, and Luxury Car experienced the biggest drops.
- Volume-weighted, overall truck segment (including pickups, SUVs, and vans) values decreased by 0.54% last week. In comparison, the market values decreased by 0.55% on average during the prior 4-week period.
- In truck segments, the Sub-Compact Luxury Crossover and Full-Size Luxury Crossover/SUV segments performed the worst.
Specialty Markets in Focus
Collectibles: Although most enthusiasts are anxiously awaiting the collectible car “super week” that happens in Scottsdale, Arizona in mid-January, don’t forget that Mecum is hosting a major auction in Kissimmee, Florida January 3rd -13th.
Recreational Vehicles: As we move further into winter, RVs are continuing to exhibit typical seasonal behavior. Both towables and motorized units are down slightly this month, but their rate of decline has slowed.
Powersports: The Powersports market is down as we enter the New Year. Nearly all segments see declines in value, with the Off-Road bikes taking the biggest hit this month.
Heavy-Duty: Trucks are moving in and out of service faster and we will be watching to see how much wholesale values are affected.
Medium-Duty: Wholesale prices continue to stabilize as demand grows for units in these segments to satisfy regional delivery and construction needs.