Black Book: Summer Season is Here, RVI: Where Price Drop is Heading July 2, 2015
Anil Goyal

Trucks Continue Breaking Pattern by Holding Strong in Prices

Anil Goyal
VP of Automotive Valuation and Analytics
Black Book

Used vehicle values are seeing depreciation pick up steam during the summer season, with the exception of Premium Sporty Cars. Cars have seen accelerated depreciation since the beginning of May; trucks continue going against the grain by breaking seasonal patterns and holding strong in the early summer weeks. Softness in the car market is expected during summer months as buyers are pushing prices down on volume-heavy car segments.

Here are key findings from the latest Black Book Market Insights

Volume-weighted, Car Values Decreased 0.53% Last Week, and Last Year by 0.48%:
Truck values decreased by 0.22% last week, this time last year by 0.25%.

Entry Level and Entry Midsize Car Segments Led Decline at 0.82% and 0.81%, Respectively:
Premium Sporty outperformed cars for 8th straight week, while Entry Level Cars have underperformed for 11th.

Compact and Mid-size Pickup Segments Increased by 0.26%:
While the Compact SUV segment increased by 0.16%.
Abdalah_Rene_RVI Group

RVI Group Forecasts Residual Values through 2018

Rene Abdalah
Vice President, Passenger Vehicle
RVI Group

Residual values are expected to see change coming from changing dynamics in the US economy and in the new vehicle market. Stronger new vehicle sales and growing leasing activity, along with higher incentives, will lead to softening of residual values. Leasing growth is expected to continue over the next several years. RVI Group expects that used vehicle prices will fall by 8% from their current values by 2018.

Residual forecasts are featured in the RVI Risk Outlook

Lease Penetration in New Vehicle Sales for Q1 2015 was 20.3%:
That was the first time leasing penetration has gone over 20% since 2000.

Used Supply of Compact Will Continue to Increase through May 2017 Before Levelling Off:
By 2018, used compact car prices are expected to drop 5.7% below current levels.

RVI Expects Softening of Canadian Used Vehicle Prices Over Next Five Years:
Expect RVI’s Canada used vehicle price index to fall by 2.8% from current levels.
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