LAWRENCEVILLE, Ga. — Data from Black Book shows that in June, a large disparity between car and truck depreciation patterns began to surface, with smaller cars experiencing the most depreciation during the month.
According to Black Book, the average price of a used vehicle for model years 2009-2013 declined 1.6% in June, compared with a decline of 1.2% in May. The average price for domestic cars dropped 2.8%; import cars dropped 2.4%; domestic trucks declined 0.8%; and import trucks declined 1.0%. Average pre-recession annual depreciation was continually recorded between 15% and 18%, and Black Book expects 2015 depreciation near 14.5%.
Entry-level cars felt the strong post-tax season slump, falling 4.7% in value during June. Vehicles in this segment include the Chevrolet Aveo, Honda Fit, Kia Rio; Nissan Versa; and the Toyota Yaris. Vehicles in this segment finished the month with an average price of $8,180, a 21.5% decline from a year ago ($10,425).
Compact SUVs saw the strongest price retention during June, finishing 0.8% on the month. Vehicles in this segment include the Jeep Wrangler and Nissan Xterra, and they finished the month with an average value of $25,808, a 2.4% decline from year-ago levels ($26,435).
The top three vehicle segments with the largest depreciation during June were on the smaller car spectrum (entry-level cars down 4.7%; compact cars down 3.9%; and entry mid-size cars down 3.5%). Two of these three have also shown the greatest depreciation over the last twelve months (entry-level cars declined 21.5%; and entry mid-size cars declined 20.2%).
For the second-straight month, premium sports cars finished with the lowest depreciation among all car segments, dropping just 0.7% in June after being unchanged in May. Vehicles in this segment include the BMW 6-Series, Mercedes-Benz CL Class, Porsche Panamera, Audi S8/R8, and Cadillac XLR. Vehicles in this segment finished the month with an average segment price of $44,115, a 14.1% change from a year ago ($51,354).
“The disparity between car and truck depreciation has definitely shown itself over the last few months, driven largely by the hot demand for trucks throughout 2015,” said Anil Goyal, vice president of automotive valuation and analytics for Black Book. During the past three months, overall car segments have depreciated 4.7% while trucks have remained largely unchanged at just a 0.6% change.