Seasonal Depreciation in Line with Expectations

By Staff Writer December 11, 2024 641

After experiencing lower depreciation during Thanksgiving week, the market’s depreciation rate increased last week but remained consistent with typical seasonal expectations, according to Black Book. However, older vehicles aged 8 to 16 years reported lower depreciation, dropping by -0.38%, compared to 2 to 8-year-old vehicles, which declined by -0.63%, and 0 to 2-year-old vehicles, which declined by -0.55%.

Car Segments 

  • On a volume-weighted basis, the overall Car segment decreased -0.66%. For reference, in the previous week, cars decreased -0.33%.
  • The 0-to-2-year-old Car segments were down -0.52% and 8-to-16-year-old Cars decreased -0.40%.
  • All nine Car segments experienced declines last week.
  • Following two weeks of stability with consecutive low depreciation of 0.27%, the Compact Car segment experienced a significantly larger depreciation last week, declining by 0.88%. In contrast, the older 8- to 16-year-olds continue to report much lower depreciation, at a decrease of 0.37%.
  • Last week, the depreciation of newer used Sub-Compact Cars, aged 0 to 2 years, slowed, marking the smallest single-week depreciation of -0.16% for the segment since early October.

Truck / SUV Segments

  • The volume-weighted, overall Truck segment decreased -0.62% compared to the decrease seen the prior week of -0.28%.
  • The 0-to-2-year-old models saw an average decrease of -0.56% and the 8-to-16-year-old models experienced an average decrease of -0.36%.
  • Twelve of the thirteen Truck segments reported a decrease in values last week.
  • As incentives on new Full-Size Trucks continue to rise, the used market is under pressure, resulting in a -0.87% decline for the 0 to 2-year-old Full-Size Truck segment last week. This is the largest single-week decline for trucks of this age since December 2023. In comparison, the 8 to 16-year-olds segment saw a depreciation of -0.41%.
  • The Minivan segment experienced the largest decline last week, dropping by -1.30%, marking the most significant single week decrease since November 2023.
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Last modified on Friday, 13 December 2024 11:24