Along with a trio of perspectives from the auction and dealer worlds, the Black Book Market Insights report looking at the first full week of activity in 2018 showed truck segments with larger depreciation than cars.
Editors also determined only one vehicle group — subcompact luxury crossovers — maintained its value from the previous week. Black Book also noticed compact vans saw the heaviest depreciation, dropping in value by 1.70 percent.
“The first week of the year saw used-vehicle values continuing to decline at a pace not much different from the average weekly decline in the month of December,” said Anil Goyal, senior vice president of automotive valuation and analytics at Black Book.
Volume-weighted, editors reported that overall car segment values decreased by 0.57 percent last week, slightly improved from the average weekly decrease of 0.62 percent in values spotted during the previous four weeks.
Black Book indicated the luxury car segment decreased in value at the highest rate among all the car segments.
Again looking at volume-weighted data, editors found that overall truck segment values (including pickups, SUVs, and vans) decreased by 0.66 percent last week, slightly worse than the average weekly decrease of 0.62 percent in values reported during the previous four weeks.
The opening stanza of 2018 allowed Black Book’s representatives in the lanes to gather expectations from a wide array of industry professionals. The rundown began with an auction owner in South Carolina.
“Auto auctions can always use more cars and that supply need will continue in 2018,” the owner said. “The new tax plan should be a boost. The industry could use that surge since the ‘tax season’ has become shorter.”
Next, Black Book collected the thoughts from an executive at one of the auction chains.
“I believe the supply side of the auction business will grow due to more off-lease and repo units becoming available to remarketers. I also feel that the overall dynamics of the industry will be similar to 2017, which is good.”
Finally, Black Book relayed the outlook of a franchised dealer from Georgia.
“We feel like our new- and used-car business will improve in 2018 from a pretty darn good 2017. All of the economic indicators substantiate that theory and the recently passed tax laws should provide a boost both short- and long-term,” the dealer said.