LAWRENCEVILLE, Ga.—A new report shows that at mid-year, vehicle depreciation is showing pockets of strength, and—not surprisingly—trucks are the strongest segment.
According to Black Book data, the average price of a used vehicle for model years 2012-2016 decreased in value 1.3%, slightly more than the 1.2% change in May. Overall, car values declined 1.8% (unchanged from last month), and trucks decreased 0.8% in value during June. All vehicles are averaging a 12-month depreciation of 16.7%.
“Falling gas prices in the month of June resulted in pockets of strength in used vehicle valuations,” said Anil Goyal, senior vice president of automotive valuation and analytics. “Pickup trucks and large utilities have been strong so far this year while small cars have continued to drop, but the remainder of 2017 is expected to show differing trends in terms of vehicle retention strength.”
In June, small pickups had the lowest monthly depreciation at -0.1%. Vehicles in the Small Pickup segment include the Toyota Tacoma, Chevrolet Colorado, GMC Canyon, Nissan Frontier and the Honda Ridgeline. Vehicles in this segment finished June with an average price of $21,328, a -7.3% change from a year ago.
Sub-compact cars saw the largest depreciation during the month at 2.8%. Vehicles in the Sub-compact car segment include the Chevrolet Sonic, Ford Fiesta, Honda Fit, Toyota Yaris, Nissan Versa, Kia Soul and the Hyundai Accent. Vehicles in this segment finished June with an average price of $6,554, a -22.0% change from a year ago, Black Book data shows.
The segment with the largest 12-month depreciation currently is prestige luxury cars (-25.4%). Vehicles in the prestige luxury car segment include the BMW 7-Series, Lexus LS 460, Porsche Panamera, Jaguar XJ, Mercedes Benz S-Class and the Audi A8. This segment finished June with an average price of $34,894, down from $46,781 a year ago.
Over the past three months, two segments have shown unchanged value or an increase in overall value: full-size pickups are unchanged, and small pickups have gained +0.2% in value.
Sub-compact luxury CUVs represented the truck segment with the largest monthly depreciation in June at 1.8%. Vehicles in sub-compact luxury crossover segment include the Audi Q3, BMW X1, Mercedes Benz GLA Class, and the Mini Cooper Countryman. Vehicles in this segment finished the month with an average value of $16,388, a -18.9% change from a year ago.