I talk about this every year, explaining that all used cars turn a year older in early September.
According to Black Book data, the average price of a used vehicle for model years 2011-2015 depreciated by -2.4% during August, noticeably more than July (-1.5%). In comparison to previous years, the depreciation rates seen in the last 3 years in the month of August were -1.4%, -1.9% and -1.3% in 2015, 2014 and 2013, respectively. Cars overall saw higher depreciation in August, ending the month at -3.1% compared with -1.9% in July. Trucks as a whole finished at -1.8% for August. All vehicles are currently averaging a 12-month depreciation change of -16.2%.
Near-Luxury Cars saw the highest depreciation during August at a rate of -3.7%. Vehicles in this segment include the Acura ILX, Audi A4, BMW 3-Series, Cadillac ATS, and Lexus IS250. Vehicles in this segment finished the month with an average price of $18,112, a -19.5% change from year-ago levels ($22,501).
Full-Size Pickups saw the strongest retention during August at -0.6%. Vehicles in this segment include the Chevy Silverado, Dodge Ram, Ford F150, and the GMC Sierra. Vehicles in this segment finished the month with an average price of $24,372 a -10.2% change from a year ago ($27,152).
Four other vehicle segments saw depreciation of 3% or greater in August. Those segments were the Sub-Compact Car (-3.5%); Sporty Cars (-3.4%); Luxury Cars (-3.3%); and Compact Cars (-3.3%).
The top six segments with the weakest retention during August were all cars; and while Prestige Luxury Cars saw the strongest retention among all car segments, its -2.2% rate made it just the eighth best-performing segment overall on the month (the top seven were truck segments). In fact, just two car segments ranked in the top twelve among retention for the month (Premium Sporty Car at -2.7%).
“As fall approaches, depreciation trends continue to accelerate as we head toward the last few months of the year,” said Anil Goyal, Senior Vice President of Automotive Valuation and Analytics. “We can expect to see lower retention in cars across all segments as the year continues, and we’ll continue to monitor truck levels to see if they also see weaker retention overall.”