LAWRENCEVILLE, Ga.—The average price of a used vehicle for model years 2013-2017 declined 1.9% during October, a noticeable drop compared to the previous month when values were unchanged, reported Black Book.
The -1.9% change was also the largest monthly price decline dating back to January. Cars changed -2.4% and trucks changed -1.6%.
Unlike September, when eight segments either retained their value or saw an increase, every truck and car segment saw a decline in October. Subcompact Crossovers saw the lowest depreciation at -0.4% during October. Vehicles in this segment finished the month with an average segment value of $11,926, a -8.9% change from a year ago.
And the Biggest Category to Depreciate Was…
Sporty Cars saw the largest depreciation on the month at -3.3%. Vehicles in this segment finished October with an average segment value of $13,529, a -9.1% change in value over the last twelve months, Black Book said.
Two other segments finished the month at -2.5% depreciation or greater: Full-size cars at -2.6%, and minivans at -2.5%.
Five segments including subcompact crossovers saw monthly depreciation of -1.0% or less: full-size crossover/SUV (-0.9%), full-size van (-0.9%), compact van (-0.9%), and sub-compact luxury CUV (-0.6%)
“It appears as though we’ve settled into normal depreciation patterns for the remainder of the year. Our residual forecasts reflect depreciation increasing next year,” said Anil Goyal, executive vice president, operations at Black Book. “Increasing interest rates, potentially higher incentives on new vehicles and rising used supply levels, particularly in the compact SUV segment will be key factors driving the trend in 2019.”