Automotive Fleet, February 2016
AUTOMOTIVE FLEET I FEBRUARY 2016 42 Vehicle depreciation is impacted by a number of factors from supply and demand to overall economic conditions While 2015 was a relatively stable year for depreciation some challenges are on the road ahead BY LAUREN FLETCHER Industry subject matter experts agree on one thing Overall vehicle depreciation from 2014 to 2015 has remained relatively stable Despite struggling car segments stronger truck van and SUV segments are helping keep trends stable year over year The used vehicle market remains strong overall this year driven by truck segments Passenger cars are experiencing twice the depreciation as that of trucks Trucks mostly pickups and large SUVs have been in strong demand due to improvement in housing construction and low gasoline prices said Anil Goyal VP automotive valuation and analytics at Black Book But compact cars have experienced resale struggles Compact cars have been the weakest segment in terms of resale performance over the past year with large SUVs and light trucks leading the way in retention STEADY IN 2015 DEPRECIATION Depreciation trends from 2014 to 2015 have remained stable with a few items of note Overall the used vehicle market remains strong Compact cars have experienced resale struggles Light trucks experienced a decrease in overall depreciation Small and mid size SUVs experienced a decrease in overall depreciation Overall the 2014 to 2015 calendar year is showing signs of a fading economic recession AT A GLANCE PHOTO ISTOCKPHOTO COM IVAN BAJIC FUTURE FORECASTS ARE IN GOYAL Black Book
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