This week’s Black Book Market Insights report shows trucks overall holding their values better than cars. The report also highlights the latest Black Book Retention Index, which increased 1.1 percent to 113.9 from 112.6 in the previous month.
It is estimated that up to 600,000 cars and trucks will need to be replaced as a result of Hurricanes Harvey and Irma. The replacement process began in September, resulting in significant month-over-month increases within the Index.
“Small and mid-size cars are continuing to do well, even as the buying frenzy after the hurricanes has slowed down,” said Anil Goyal, senior vice president of Automotive Valuation and Analytics.
By The Numbers
- Volume-weighted, overall car segment values declined by 0.40 percent last week. In comparison, the market values had decreased on average by 0.33-percent per week in the previous four weeks.
- In cars, the full-size and near-luxury segments performed the worst, decreasing by 0.65 percent and 0.71 percent, respectively.
- Volume-weighted, overall truck segment (including pickups, SUVs and vans) values decreased by 0.28 percent last week, worse than the average decrease of 0.12 percent per week in the previous four weeks.
- In trucks, sub-compact crossover, full-size van and full-size pickup segments performed the best.
Specialty Market Update
Black Book also provided the following insights:
- Collectibles: Even against the backdrop of the twin hurricanes that devastated the Southern United States and Caribbean last month, several auctions recorded very impressive sales totals
- Recreational Vehicles: The values of both motorized and towable units sold at wholesale auctions increased this past month, which is unusual for this time of year. In fact, the values of towables are at their highest level ever, and motorized are the highest they’ve been since July 2010
- Powersports: October is another down month in the Powersports market. All year long we have seen sustained pricing weakness across all vehicle segments and most models we cover, and it appears this is going to continue as we head into the fall
- Heavy Duty: There are additional factors to consider in the monthly wholesale value movement calculation for Heavy Duty Truck values showing up this Fall
- Medium Duty: Overall, Medium Duty units continue to depreciate as we welcome the fall season. However, this segment is not dropping as fast as it has in recent years.