LAWRENCEVILLE, Ga.—A new report shows most used vehicle values strengthening in September following hurricane replacement activity.
According to Black Book data, the average price of a used vehicle for model years 2012-2016 depreciated in value by 0.7%, last month, a much smaller drop than the current 12-month depreciation of 14.5%. Cars overall dropped -1.1% and trucks decreased 0.3% in value during September.
“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 vehicle segments increased in value in September, including mid-sized cars, sub-compact crossovers, compact crossover/SUVs and compact vans. Compact crossovers/SUVs gained the most value last month, increasing by 1.1%. This segment finished September with an average price of $12,605, down from $14,624 a year ago for model years 2012-2016.
Full-size vans were the only vehicle segment that maintained their value. Full-size vans ended the month with an average segment price of $17,532.
Two vehicle segments, mid-size crossovers and full-size pickups, shared the lowest depreciation, only decreasing in value by -0.02%. Mid-size crossovers and full-size pickups entered October with average segment prices of $17,447 and $24,125 respectively.
Prestige luxury cars saw the largest depreciation during the month, falling by 3.2%. Vehicles in this segment finished September with an average price of $32,949, a 25.2% change from year ago levels ($44,043).