LAWRENCEVILLE, Ga. — The average price of a used vehicle for model years 2011-2015 depreciated by 1.5% in July, slightly less than last month (1.7%) but higher but slightly more than what was recorded a year ago (1.4%), according to Black Book.
All vehicles are averaging a 12-month depreciation change of 15.4%, the same as last month and at the lower end of the range seen prior to the Great Recession. Cars ended July with a depreciation rate of 1.9%, 0.3% better than the year before. Trucks depreciated 1.2% at the end of July, according to Black Book.
“Although we saw depreciation trends last month that were consistent with typical seasonal valuation patterns this month, many segments showed slightly better retention heading into the deeper summer months,” said Anil Goyal, senior vice president of Automotive Valuation and Analytics. “Depreciation for all segments will likely worsen as fall nears and demand for certain segments continue to dwindle.”
Luxury cars experienced the highest depreciation in July at 2.5%. Vehicles in this segment finished the month with an average price of $23,476, a 21.8% decrease from year-ago levels. Full-size crossovers saw the strongest retention during the month, depreciating only 0.5%. The average price for a vehicle in this segment at the end of the month was $28,739, a 9.6% decrease from a year ago, according to Black Book. Full-size vans depreciated 0.7%.
Apart from luxury cars, compact luxury cars, mid-sized cars, prestige luxury cars, sub-compact cars and full-size cars experienced a depreciation change of more than 2%.