Black Book: Fuel Economy is an Important Market Factor
Against a backdrop of record high fuel prices and the struggling economy, three year old used cars depreciated less in the three month period ending May 1, 2008 than in the previous three month period, which ended April 1, 2008.
According to Black Book, these vehicles depreciated 5.8 percent from February 1 to May 1, while they had fallen 6.2 percent from January 1 to April 1.
The market segments with the greatest dollar depreciation for the three month period ending May 1 mirror the pattern from the previous three month period ending April 1.
These market segments included premium sporty cars, prestige cars, luxury cars, luxury SUVs, and full size pickups. The average depreciation of these five segments was $2,058.
The segments with the smallest dollar depreciation included compact cars, entry mid-size cars, upper mid-size cars, mid-size pickups, and entry-level cars. Dropping in value an average of only $257 shows how much of a factor the cost of gasoline is within the used vehicle market.