Used Vehicle Values Weakened in November
Photo of 2012 Ram 1500 courtesy of FCA.
Five model years of used vehicles depreciated 2.3% in November, which showed a slight improvement from October and remained in line with the typical weakening of values at this time of year, according to Black Book data.
Vehicles from 2011 to 2015 had depreciated 2.9% in October and 2.8% in November of 2015. Vehicles are currently averaging a 12-month depreciation change of minus 16.6%.
Car depreciation in November improved and ended the month with a 2.6% decline compared with their 3.2% decline in October. Trucks declined 2.1% in November versus a depreciation rate of 2.6% in October.
Depreciation has been accelerating in recent months. The 12-month average depreciation for car segments a year ago was 16.6%, compared with 19.1% for this year entering December. Trucks, which showed an 8% depreciation rate a year ago compared with 14.7% this year.
"As the year comes to an end, accelerated depreciation is to be expected across virtually every segment," said Anil Goyal, Black Book's senior vice president of automotive valuation and analytics. "That being said, we will be keeping an eye on certain segments such as subcompact luxury CUV, subcompact crossover and sporty cars as they have shown weaker retention rates over the past month."
In November, subcompact luxury CUVs fell 3.8% and saw the highest drop in value. Vehicles in this category include the Audi Q3, BMW X1, Mercedes-Benz GLA Class and Mini Cooper Countryman. Vehicles in this segment finished November averaging $18,349, a 22.8% decline from a year ago.
Full-size luxury CUV/SUVs and full-size pickups saw the strongest retention in value with a 1.5% decline to $36,586 from the previous month. The full-size luxury CUV/SUV segment includes the Audi Q7, Cadillac Escalade, Land Rover Range Rover, Lexus LX 450 and the Toyota Land Cruiser.
Vehicles in the full-size pickup segments finished November averaging $22,594, a 12.7% decline from a year ago. Trucks in this category include the Ford F-150, Chevrolet Silverado 1500, Ram 1500 and GMC Sierra 1500.