Small Car Values Continue to Drop

Subcompact vehicles like the Ford Fiesta dropped 2.4% in value. Photo courtesy of Ford.
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.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>