LAWRENCEVILLE, Ga.—An improving economy and lower gas prices may be fueling demand for larger vehicles in the U.S., according to Black Book.
The vehicle valuation and automotive research company said that full-size passenger vans saw the strongest value retention during March at +1.5%. Vehicles in this segment finished March with an average price of $19,468, a +3.3% increase from year-ago levels ($18,848).
Showing the continued effects from the spring tax-buying season, three cars (entry-level car +0.1%; upper mid-size car +0.6%; full-size car +0.9%) saw increases on the month. They were joined by three trucks also showing monthly increases (full-size cargo vans +0.9%; compact CUV +1.1%; full-size passenger vans +1.5%).
“Both car and truck values held up high throughout November and December of 2014. This early buying took the steam out of the usual spring time seasonality increase and resulted in more stable prices over the last few months,” said Anil Goyal, VP of automotive valuation and analytics. “The data also show that slightly larger cars were in more demand this tax season, perhaps as a result of low gas prices and improved overall strength in the broader economy.”
The average price of a used vehicle for model years 2009-2013 depreciated by an average of -0.7% during March, slightly less depreciation than during February. Domestic cars increased +0.9%; import cars changed -0.9%; domestic trucks changed -0.3%; and import trucks changed -0.9%. Average pre-recession annual depreciation was continually recorded between -15% and -18%, and Black Book expects 2015 depreciation near -14.5%.
Luxury SUVs saw the largest segment depreciation during March at -1.5%. Vehicles in this segment finished the month with an average price of $34,597, a -13.0% change from year-ago levels ($39,770). Cargo minivans also finished the month at -1.5% depreciation.