LAWRENCEVILLE, Ga.–Used vehicles depreciated at a slightly faster pace in August than they did in July, according to Black Book, which still sees no signs of the used car bubble bursting in 2015.
The company predicts used car deprecation to near 14% by the end of the year, well below the 15%-18% depreciation rates seen pre-recession.
According to Black Book data, the average price of a used vehicle for model years 2010-2014 declined 1.6% during August, a slight change from the 1.3% decline the previous month. Domestic cars decreased 2.2%, import cars decreased 2.1%, domestic trucks fell 1.3%, and import trucks changed -1.2%.
Compact pickups (+0.4%) and full-size SUVs (+0.2%) increased in value during August.
The top twelve vehicle segments with the lowest depreciation during August were all trucks, a trend that has been in place as the economy recovered. Premium sporty cars were the best-performing car segment with a monthly depreciation of -1.7%.
Full-size crossovers represented the segment with the highest depreciation during August at 3%.
“While trucks overall have continued to show great strength for depreciation patterns, it will be interesting to see the trends in the fourth quarter,” said Anil Goyal, vice president of automotive valuation and analytics for Black Book. “The newly designated subcompact crossover segment has also continued to fare well mostly because consumers enjoy the combination of size and features.”