Used Vehicles See Lighter Depreciation in February
Photo of 2015 Ram ProMaster City compact van courtesy of FCA.
Two- to six-year old vehicles depreciated 0.8% in February, with trucks and vans showing relative strength, while luxury and sporty cars again fell hardest, especially when compared to year-ago values, according to Black Book.
Vehicles from the 2011 to 2015 model years saw the lighter depreciation as compared to their performance in late 2016, and have depreciated 17.9% over the past year. Cars depreciated 0.8%, while trucks fell 0.7% in value from January levels.
Small pickups, compact vans, subcompact SUVs, and compact cars were among the stronger performers during the month. Toyota Tacoma, Chevrolet Colorado, Nissan Frontier, and Honda Ridgeline pickups increased 0.2% in value and were the only category that gained in value. Compact vans fell 0.1% in value.
"Vehicle retention values have held relatively strong for the second month in a row this year, except for some luxury segments," said Anil Goyal, senior vice president of automotive valuation and analytics. "Consumer confidence scored above the expected rate for February, and this coupled with the tax rebate season could be having a positive influence on the retention of vehicle values since there are more sales of smaller vehicles taking place.”
Other truck and van categories performed better than their car counterparts with depreciation rates at 0.9% for full-size vans, 0.6% for full-size pickups, and 0.6% for mid-size SUVs.
Non-luxury cars performed better than luxury models with depreciation at 0.4% for compact cars, 0.6% for mid-size cars, and 0.7% for full-size cars. Luxury models depreciated at 2% for luxury cars, 2.3% for prestige luxury cars, and 1.8% for mid-size luxury SUVs.