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Used cars of all sizes outperformed trucks, vans, and larger SUVs at wholesale auctions in March, Black Book is reporting.
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Fleet mainstays such as pickups and vans are expected to perform well at wholesale this year. Higher-end vehicles, such as those found in executive fleets are expected to struggle.
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The average price of two- to seven-year-old vehicles depreciated less sharply than expected in February due to "a spirited start to the spring selling season" that has boosted prices for used passenger cars, according to Black Book.
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For the sixth week in a row, the car segment has realized lower depreciation than the truck segment, according to Black Book’s March 12 Market Insights report.
Read More →Depreciation can account for a large portion of a vehicle’s lifecycle costs. While there is no escaping from the fact that vehicles are depreciating assets, there are ways to control and minimize the depreciation costs you incur.
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Vehicle depreciation rates were at the lowest levels seen all year last week, as the effects of the spring market demand begin to kick in, according to Black Book’s Feb. 26 Market Insights report.
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An index that tracks wholesale used vehicle values fell in December for the first time in four months at a time when the used vehicle market typically shows some weakness. It also reinforced 2017 as a growth year for used vehicle sales.
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Typical seasonal highs and lows were disrupted this year due to a run of natural disasters destroying hundreds of thousands of vehicles and causing a surge in replacement activity. Overall fleet depreciation improved this year.
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The hurricanes that swept through Texas and Florida destroyed and damaged as many as 900,000 vehicles, and the replacement activity that the catastrophic events spurred boosted retention by almost 2%, according Black Book.
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The average price of a used vehicle from model years 2012 to 2016 depreciated in value by 2.2%, in November, according to Black Book. Year-over-year, the average value for these vehicles has depreciated by 13.2%.
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