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According to Black Book® data, the average price of a used vehicle for model years 2009-2013 saw a slight improvement in August with overall depreciation at -1.3% compared with -1.5% in July. Domestic cars changed the most at -2.5%; import cars changed -1.6%; domestic trucks changed -1.1%; and import trucks changed -0.8%. Average pre-recession depreciation is historically between -1% and -2% monthly, and Black Book expects overall 2014 depreciation of -13.5%.
The lower depreciation rate in August counters the expected seasonal pattern, particularly since the new 2015 models typically force larger depreciation on late-model units this month, and second-half depreciation is still expected to accelerate through the remainder of 2014.
For the second-straight month, Full-Size Passenger Vans showed the strongest monthly retention, recording +0.1% and the only segment showing positive change (Dodge Sprinter, Ford E-Series, Chevrolet G-Series). Compact SUVs saw the second-best monthly depreciation rate at -0.2% (Jeep Wrangler, Nissan Xterra). The average segment price at the end of August was $20,293, a -5.3% change from year-ago levels ($21,425).
For the third-straight month, Premium Sporty Cars led all car segments with the lowest depreciation, registering -1.1% in August and -0.9% in July (BMW 6-Series, Mercedes-Benz CL-Class, BMW M6, Audi R8, Audi S8, Mercedes-Benz SL-Class, Cadillac XLR). The average segment price at the end of August was $48,151, a -12.3% change from year-ago levels ($54,898).
Entry-Level Cars led all segments with the highest monthly depreciation at -4.1% (Chevrolet Aveo, Honda Fit, Kia Rio, Nissan Versa, Toyota Yaris). The average segment price at the end of August was $8,157, a -14.7% change from year-ago levels ($9,562).
Cargo Minivans led all truck segments with the highest monthly depreciation at -3.3% (Dodge Caravan, Ford Freestar, Dodge Grand Caravan, Ford Transit). The average segment price at the end of August was $11,192, a -11.9% change from year-ago levels ($12,698).
The top ten best-performing segments were all trucks, and the four truck segments not in the top ten were Compact CUV (-1.3% monthly), Passenger Minivans (-1.5%), Full-Size CUVs (-2.1%) and Cargo Minivans.
“The near-term outlook for trucks continues to show significant retention strength and these segments are clearly driving the industry as a whole,” said Ricky Beggs, Editorial Director at Black Book. “While the trucks are outperforming seasonal trends currently we’re not surprised to see segments such as Entry-Level cars and Entry Mid-Size cars showing the largest depreciation.”
Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend.