Sedan wholesale values are expected to improve as more SUVs and crossovers return to the used market. Meanwhile, SUV and crossover wholesale values are beginning to decline
Used vehicles from fleet consignors in ADESA sales increased 4.3% to $13,771 in April compared to March, and were up 4.4% from a year ago, according to monthly commentary from Tom Kontos.
Black Book's Used Vehicle Retention Index fell to 113.6 in April, a 0.2% decline from March. Despite the index now falling for five straight months, it is still 1.4% higher than the 112 registered a year ago.
Overall car segment values were up 0.24% last week, compared to 0.29% the week before. Overall truck segment values were up 0.16% last week, compared to 0.19% the week before.
Black Book analysts forecast an annual depreciation rate of 15% in 2019 as the supply of used cars and trucks increases, up from a "noticeably strong" 12.4% depreciation rate in 2018.
Outside factors such as a record-spanning government shutdown, the polar vortex, and a hit to consumer confidence led to a slow start to used sales in 2019.
This growth was in large part fueled by the strong performance of lower-priced vehicles. Compact cars and midsize cars, in specific, saw the strongest growth among all vehicle segments and outperformed the overall market.
The two months of falling vehicle values may be an indicator of what depreciation might look like in 2019.
After several weeks of rising depreciation, vehicle values stabilized last week.
