Get ready for turkey and softer prices in the lanes.
This week’s Black Book Market Insights report showed that used-vehicle value depreciation hit an all-time weekly high for 2017. Editors indicated sub-compact luxury crossovers saw the largest decrease in values last week, dropping by 1.25 percent. A close second, minivans saw the next-highest depreciation, falling by 0.94 percent.
“A great deal can change with values over a few weeks. Many segments are rapidly shifting toward seasonal high declines,” Anil Goyal, senior vice president of automotive valuation and analytics at Black Book, said.
Looking at volume-weighted data, editors found that overall car segment values decreased by 0.67 percent last week, the highest weekly average depreciation rate for cars this year.
Black Book added that the midsize and near luxury segments also had their respective highest weekly depreciation rates of the year at 0.90 percent and 0.89 percent, respectively. The compact segment followed closely with a near-high at 0.82 percent.
Again reviewing volume-weighted information, editors determined overall truck segment values — including pickups, SUVs and vans decreased by 0.5 percent last week, the highest weekly average depreciation rate since January.
Black Book went on to mention the sub-compact luxury crossover segment had the highest weekly depreciation rate at 1.25 percent. The minivan and full-size crossover/SUV segments had their highest declines this year at 0.94 percent and 0.91 percent, respectively.
Turning next to what Black Book’s representatives in the lanes last week, two of the most notable anecdotes originated out of California.
“A major national remarketer reported that his vehicles brought the highest values in many, many years in October 2017. He also stated that he has seen the values begin to slip in November and expects the softness to continue into early 2018,” one late watcher in the Golden State reported.
Another report surfacing out of California added, “Lots of no-sales in most of the lanes. Only a couple of remarketers had lowered their floors enough to sell at a high percentage.”
Sliding over the Rocky Mountains, the report out of Colorado included details that likely won’t surprise dealers.
“Trucks and SUVs remain in demand, which is not unusual for our market, especially in the fall,” the Black Book representative stationed in Colorado shared.
In the Midwest, another specific segment kept ringmen busy.
“The nicer vehicles are still in demand and sell, but there was more interest than normal in the higher mileage vehicles. Dealers are having difficulty sourcing the really good condition vehicles in the luxury segment,” Black Book’s lane watcher in Indiana said.
Finally, wrapping up in Georgia, the representative said, “Mid-size and sporty cars were selling well, but most of the attention was still on the trucks and SUVs.”