Black Book: Stable Used Car Market Except for Luxury Vehicles

“Prices remained stable for a second consecutive week retaining the spring season strength while luxury vehicles dropped further.”

Anil Goyal, Executive Vice President, Operations

Stable Market Except for Luxury Vehicles

Volume-weighted, overall car segment values decreased by just 0.05% last week. In comparison, the market values had increased by 0.09% on average during the prior 4-week period.
In cars, the values of Luxury Cars decreased the most, by 0.78%.
Volume-weighted, overall truck segment (including pickups, SUVs, and vans) values decreased by just 0.02% last week. In comparison, the market values were up by 0.09% on average during the prior 4-week period.
In trucks, the values of Full-Size Luxury Crossover/SUVs decreased the most, by 0.59%.

Sentiment from the Industry

Key comments from auction lanes and industry observers:

“Late model, off-lease units remain very hot. Dealers are clamoring for those low mileage, clean, retail ready vehicles that are in short supply.” Auction GM in PA

“The sale was up and down with the result being more no-sales. The bank repossessions had the highest sales percentages.” Gerry in FL

“Prices remain fairly stable and auction reports sales conversions around 65%. The smaller passenger vehicles continue to bring strong money.” Bret in SC

“More franchise dealers were bidding and buying today, which may indicate further softness in new vehicle sales. They are buying late model used vehicles at auction.” Bob in MA

Retention Trends Three-Years Post Model Year

Luxury Cars

The retention rates (as percent of typically-equipped MSRP) on Luxury Cars have continued to decline over the last few years. An average 2016 MY luxury car is valued today at only about 40% of its original MSRP.

Vehicle Highlight

2019 Honda Odyssey is equipped with a 3.5L V6 paired with a 9-speed or 10-speed (Touring and Elite trims only) automatic transmission. This family minivan offers equipment like onboard vacuum, video baby monitor, in-cabin intercom, and driver assistance features. MSRP with destination starts at $31,235 and the key competitors include the Toyota Sienna, Chrysler Pacifica, Kia Sedona, and Dodge Grand Caravan.