Seasonal depreciation movement surfaces in September

Late-model vehicles are continuing to depreciate annually at a little more than 1% per month, according to the latest Black Book data.

Analysts reported this week that the average price of a used vehicle for model years 2013 through 2017 decreased in value by 1.0% during September, with cars softening by 1.1% and trucks dipping by 1.0%.

Black Book computed that all vehicles in this age segment are averaging a 12-month depreciation reading of 13.9%.

Analysts noticed the only vehicle segment that saw a positive change during September was the sub-compact crossover, which edged up by 0.4%. One segment finished the month with just a 0.1% decline: full-size luxury CUV/SUV.

Vehicles in the sub-compact crossover segment include the Jeep Renegade, Mazda CX-3, Nissan Rogue, Buick Encore and Honda HRV.

Models in the Full-Size Luxury CUV/SUV segment include the BMW X7, Audi Q7, Lexus LX 470, Mercedes-Benz G-Class and Toyota Land Cruiser.

On the opposite end of the spectrum, Black Book determined two segments finished with the highest monthly depreciation. They included compact vans (down 2.2%) and luxury cars (down 1.9%).

Units in the compact van segment include the Chevrolet City Express, Ford Transit Connect, Mercedes-Benz Metris, Nissan NV, Ram C/V, and Ram ProMaster City.

Vehicles in the luxury car segment include the Acura RLX, Audi A7, BM 5-Series, Cadillac CT6, Lexus GS 350, Mercedes-Benz E-Class and the Volvo S90.

“September has come in strong in the last couple of years. However, the values were softer in the month this year, consistent with previous seasonality trends,” Black Book executive vice president of operations Anil Goyal said.

“The used-vehicle values could see a steeper decline in Q4 if the demand slows as inventories on both new and used vehicles remain high,” Goyal went on to say.

Source: Black Book