Subcompact vehicles like the Ford Fiesta dropped 2.4% in value. Photo courtesy of Ford.
This week’s Black Book Market Insights report looked at which vehicle segments continue to face heavier-than-normal depreciation, particularly over the last month.
Smaller cars, including the sub-compact cars (-2.4%) and compact cars (-1.6%), are two of the three segments that are showing the greatest single-month valuation drop, according to Black Book. The compact van has also seen a drop in value (-2.2%).
“Sub-compact cars saw the largest drop in values last month, and they continue to experience downward pressure as demand is weak and supplies remain abundant,” said Anil Goyal, senior vice president of Automotive Valuation and Analytics.
According to the report, here are other key stats:
- Volume-weighted, overall car values decreased by 0.47% last week. This is worse than the average depreciation rate of 0.27% seen in the previous four weeks.
- Sub-compact car and mid-size car segments experienced a significantly higher drop in value of 0.87% and 0.79%, respectively.
- Volume-weighted, overall truck values decreased by 0.30% last week. The average depreciation rate in truck segments was 0.15% in the previous eight weeks.
- Compact van, sub-compact crossover and minivan segments experienced the largest decreases at 1.59%, 0.79%, and 0.65%, respectively.