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8 Segments Will Lead 4th Quarter Depreciation

October 24, 2014

Black Book expects luxury-level car segments will feel the largest depreciation through the balance of the year, largely driven by off-lease returns in lease-heavy segments.


“Fuel prices and off-lease returns will continue to have a noticeable impact on luxury-level and smaller car segments through the remainder of the year,” said Ricky Beggs, editorial director at Black Book. “The compact crossovers are experiencing higher than normal depreciation because of the large number of various models available within the segment.”

Luxury segments in this class will include Premier Luxury (BMW 7 Series, Audi A8, Lexus GS/LS, Mercedes-Benz S); Near-Luxury (Audi A4, Mercedes-Benz C, Cadillac CTS, Acura TL); and Luxury Level (BMW 5 Series, Audi A6, Cadillac DTS, Lexus IS, Infiniti M, Lincoln MKS).

Body StyleSegment7/1/201410/1/20143M Chg12M Chg
Luxury Level CarsLLC$22,628$21,111-6.70%-16.80%
Near Luxury CarsNLC$19,293$18,384-4.70%-14.30%
Prestige Luxury CarsPLC$38,533$36,763-4.60%-18.90%

Black Book
continued to report that entry-level and small cars will also feel noticeable value drops as a result of significantly low fuel prices and falling demand for these vehicles.

Cars in this class include Entry Mid-size Cars (Chrysler 200, Ford Fusion, Chevrolet Malibu, Volkswagen Jetta, Toyota Prius); Upper Mid-size Cars (Honda Accord, Nissan Altima, Toyota Camry, Kia Optima, Ford Taurus); and Compact Cars (Honda Civic, Chevrolet Cobalt, Chevrolet Cruze, Ford Fiesta, Ford Focus).

Body StyleSegment7/1/201410/1/20143M Chg12M Chg
Entry Mid-Size CarsEMC$12,539$11,601-7.50%-13.70%
Compact CarsSCC$10,396$9,737-6.30%-13.40%
Upper Mid-Size CarsUMC$12,695$11,799-7.10%-13.40%

Two additional segments expected to see higher depreciation include higher end full-size SUV (Nissan Armada, Jeep Commander, Dodge Durango, ford Expedition, Chevrolet Tahoe); and the Compact Crossovers (Jeep Compass, Honda CR-V, Mazda CX-7, Chevrolet Equinox, Ford Escape, Nissan Rogue).

Body StyleSegment7/1/201410/1/20143M Chg12M Chg
Compact CUVCXU$15,050$14,259-5.30%-11.90%
Full-Size SUVFSU$24,933$23,811-4.50%-9.30%

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