The rate of depreciation among car segments continued to accelerate last week, particularly among mid-size, full-size, and subcompact cars, according to Black Book’s May 29 Market Insights report.
“Mid-size cars depreciated at a higher rate than other car segments for the second week in a row. Dealers are reporting slow retail and tightening in subprime credit,” said Anil Goyal, senior vice president of automotive valuation and analytics.
Mid-size cars depreciated 0.64% last week, according to Black Book. Mid-size cars and subcompact cars were close behind at 0.60% and 0.50% depreciation, respectively. Premium sporty cars and sporty cars were last week’s best performance among cars, realizing depreciation rates of 0.1% and 0.16%, respectively.
Cars values decreased by 0.41% last week, compared to the average weekly decrease of 0.31% over the previous two weeks on a volume-weighted basis. Truck values decreased by 0.28% last week, compared to the average weekly decrease of 0.34% over the previous two weeks.
The best-performing vehicles among the truck segment were small pickups, which saw values increase by 0.14%, and subcompact luxury crossovers that saw values stay flat compared to the prior week. The worst-performing vehicles among the segment were mid-size SUVs and compact vans, which posted depreciation rates of 0.58% and 0.54%, respectively.