Black Book: Truck Segment Showing Higher Depreciation
Last week, cars showed better retention that they did the previous four weeks, while trucks depreciated more than they have during that same timeframe, Black Book reported today.
LAWRENCEVILLE, Ga. — Last week, cars showed better retention that they did the previous four weeks, while trucks depreciated more than they have during that same timeframe, Black Book reported today.
Car values decreased by 0.57% last week, lower than the segment’s 0.66% average depreciation rate recorded over the previous four weeks. Truck values decreased by 0.58%, which was higher than the average depreciation rate of 0.43% recorded during the same timeframe.
“Broader declines seen in the market last week as segments with larger declines included sub-compact cars, sporty cars, mid-size crossovers and full-size pickups.” said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics.
The sporty car, prestige luxury car and compact car segments declined the most, dropping by 1.20%, 0.99%, and 0.82%, respectively. In the truck category, full-size vans, mid-size crossovers and SUVs, and full-size pickups declined the most, dropping 1.02%, 0.75%, and 0.74%, respectively.
On the other side of the spectrum, subcompact luxury crossovers and compact vans showed the greatest retention in the truck segment, depreciating 0.24% and 0.14%, respectively. On the car side, the mid-size car and near luxury car held their values best, depreciating by 0.28% and 0.25%, respectively.
Overall, trucks performed better than cars last quarter, with the full-size pickup performing the best with a 3% quarterly depreciation rate. The subcompact crossover was the worst performing segment with 8% quarterly depreciation.
More Auto Finance
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →