Premium sporty cars recorded the largest decrease in value in October, while prestige luxury cars have registered the highest depreciation over the course of the last 12 months.
The last remaining replacement activity stemming from hurricanes Harvey and Irma drove continued vehicle value stability and shopping demand in October, with the firm’s index rising to 114.6 in October.
Depreciation increased for both cars and light trucks, with car segments recording the highest weekly depreciation in seven weeks. Prices in the Houston-area, however, remain elevated, according to the firm.
Fueling the increase was vehicle replacement activity related to Hurricane Harvey, which began last month. According to Black Book, compact cars, compact crossover SUVs, full-size cars, and mid-size cars each realized significant month-over-month increases within the index.
The firm's white paper sheds light on the disconnect between consumers and many dealers when it comes to trade appraisals. It also explores what’s at stake when a consumer introduces a trade-in as a part of the transaction.
The index has remained unchanged or moved positive in three of the last four months, according to officials. Posting noticeable gains in their respective segment indexes were full-size cars, full-size pickups, luxury cars, and near-luxury cars.
The price of cars dropped 1.8%, while trucks recorded a 0.8% decline in value for the month of June. Small pickups registered the lowest monthly depreciation, while subcompact cars recorded the largest depreciation in June.
The index’s rise in June was due in large part to falling gas prices, which helped drive the sale of used trucks, crossovers and SUVs. The downside of falling gas prices was the continued acceleration in depreciation for subcompact and compact cars.
According to an online survey conducted by Black Book, 46% of the 2,100 consumers polled said getting the right trade appraisal was either ‘very important’ or ‘extremely important’ to pulling the trigger on a vehicle purchase.
NsightLive is a content engagement company that delivers leads to dealers through its Live content platform. With Black Book’s trade appraisal engine, the company now offers independent dealers an online trade appraisal tool.
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