Hurricane Replacement Still Boosting Used Vehicle Prices
The average price of a used vehicle for model years 2012 to 2016 fell 0.7% in September, with the lion’s share of that depreciation coming from the car segment, according to Black Book. As of September, all vehicles are averaging a 12-month depreciation of 14.5%.
Breaking it down to a segment level, the car segment saw its overall value fall by 1.1% on a month-over-month basis while the truck segment saw its overall value fall by 0.3%.
“Although consumer confidence fell slightly in September, vehicle values held very strong because of all the vehicle replacement activity caused by the hurricanes,” said Anil Goyal, senior vice president of automotive valuation and analytics. “In addition to utilities, smaller vehicles are showing better retention values as we head into the holiday season based largely on the great value they currently present to shoppers.”
Four truck segments performed better than the truck segment as a whole.
Compact crossovers/SUVS saw a 1.1% month-to-month rise in value in September, the highest of all vehicle segments. On a year-over-year basis, the segment saw its value fall 13.8%, resulting in an average price of $12,605 during September.
Full-size vans such as the Ford T150, Ram 1500, and Chevrolet G1500 saw monthly depreciation remain flat. The average price of a MY 2012-2016 full-size van in September was $17,532.
Mid-size crossovers and full-size pickups saw the lowest monthly depreciation during September, as both segments’ average value fell by 0.02%. The average price of a MY 2012-2016 mid-size crossover during the month was $17,447, and $24,125 for a full-size pickup.
The biggest monthly change came from prestige luxury cars such as the BMW 7-Series, Lexus LS 460, Mercedes Benz S-Class, and the Jaguar XJ. These vehicles saw values fall 3.2% during the month and on a year-over-year basis, the prestige luxury car segment has experienced a 25.2% fall in value. The average price for a prestige luxury vehicle in September was $32,949.