Last week, used car values experienced the highest ......October 29, 2018 “Last week, used car...
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October 29, 2018 “Last week, used car values experienced the highest depreciation since January this year – driven by rising no-sales noticed at several auto auctions.” Anil Goyal, Executive Vice President, Operations Model Years: 2010-2016, Volume Weighted Wholesale Average Values, Weekly Change from 10/19/18 to 10/26/18 Depreciation Trends Accelerating • Volume-weighted, overall car segment values decreased by -0.69% last week. In comparison, the market values had decreased by only -0.36% on average during the prior 4-week period. • In cars, the Compact Car, Mid-Size Car and Sporty Car segment experienced the biggest drops. • Volume-weighted, overall truck segment (including pickups, SUVs and vans) values decreased by -0.48% last week. In comparison, the market values had decreased by -0.26% on average during the prior 4-week period. • In trucks, the Mid-Size Crossover/SUV segment performed the worst. -$32 -0.54% -$72 -0.90% -$74 -0.83% -$30 -0.27% -$81 -0.52% -$118 -0.63% -$194 -0.57% -$128 -0.85% -$150 -0.39% -$75 CARS -0.69% -1.2% -1.0% -0.8% -0.6% -0.4% -0.2% 0% WEEKLY CHANGE -$4 -0.03% -$54 -0.44% -$115 -0.74% -$76 -0.34% -$25 -0.15% -$48 -0.25% -$110 -0.54% -$124 -0.40% -$48 -0.37% -$11 -0.13% +$1 +0.01% -$97 -0.62% -$86 -0.44% -$78 TRUCKS -0.48% -1.0% -0.8% -0.6% -0.4% -0.2% 0% +0.2% WEEKLY CHANGE
Transcript of Last week, used car values experienced the highest ......October 29, 2018 “Last week, used car...
October 29, 2018
“Last week, used car values experienced the highest depreciation since January this year – driven by rising no-sales noticed at several auto auctions.”
Anil Goyal, Executive Vice President, Operations
Model Years: 2010-2016, Volume Weighted Wholesale Average Values, Weekly Change from 10/19/18 to 10/26/18
Depreciation Trends Accelerating
• Volume-weighted, overall car segment values decreased by -0.69% last week. In comparison, the
market values had decreased by only -0.36% on average during the prior 4-week period.
• In cars, the Compact Car, Mid-Size Car and Sporty Car segment experienced the biggest drops.
• Volume-weighted, overall truck segment (including pickups, SUVs and vans) values decreased by
-0.48% last week. In comparison, the market values had decreased by -0.26% on average during the
prior 4-week period.
• In trucks, the Mid-Size Crossover/SUV segment performed the worst.
-$32-0.54%
-$72-0.90%
-$74-0.83%
-$30-0.27%
-$81-0.52% -$118
-0.63%
-$194-0.57%
-$128-0.85%
-$150-0.39% -$75
CARS-0.69%
-1.2%
-1.0%
-0.8%
-0.6%
-0.4%
-0.2%
0%
WEE
KLY
CH
AN
GE
-$4-0.03%
-$54-0.44%
-$115-0.74%
-$76-0.34%
-$25-0.15% -$48
-0.25%
-$110-0.54%
-$124-0.40%
-$48-0.37%
-$11-0.13%
+$1+0.01%
-$97-0.62%
-$86-0.44%
-$78TRUCKS-0.48%
-1.0%
-0.8%
-0.6%
-0.4%
-0.2%
0%
+0.2%
WEE
KLY
CH
AN
GE
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October 29, 2018
Sentiment from the Auction Lanes Our editors and personnel attend several auctions every week across the country to provide key insights:
“Rising no-sales are putting pressure on the consignor to lower the floors.” Richard in WI
“The dealers still present a positive sentiment as we had a good run of vehicles with a good selection of nice units.” Jim in WA
“A softer sale this week with more no-sales than we have had in 2 months.” Greg in NV
“A new car dealer stated that he purchased more vehicles than normal to take advantage of the falling market.” Norm in IL
“The sale started off promising before moving to mostly no-sales. The $5,000 price range was popular today.” Bret in SC
12-Month Depreciation By Segment: Oct 2017 to Oct 2018
source: Black Book Visual Analytics
Retention rates (percent of original MSRP) have been declining on Near Luxury Cars as supplies from off-lease have risen while demand has declined due to rising competition from mainstream models. Currently, 2016 Model Year vehicles in this segment are retaining 49.3% of their MSRP. In comparison, 2012 Model Year vehicles retained 55.2% of their MSRP by October 2014.
Vehicle Highlight The 2019 Jeep Cherokee is slightly refreshed for the new year with an updated fascia and rear end among other features. Standard on all trims but the Limited, Overland, and Trailhawk, the Cherokee features a 2.4L four- cylinder engine that is capable of up to 184 hp and 171 lb-ft of torque. MSRP for this Compact Crossover SUV starts at $25,190 including destination charges and its main competition includes the Ford Escape, Chevrolet Equinox, and Toyota Rav4.
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