Luxury Cars Enjoy a Minimum Depreciation Rate

In results that have been released in the latest Black Book Market Insight report, near-luxury, luxury and prestige luxury cars are seeing lighter depreciation rates than most other car segments.

While the results indicated that the depreciation patterns for cars and trucks have remained largely constant over the last quarter, the luxury car segment experienced an even smaller change in value.

Details of the report have shown that that the average cost of a car dropped by 0.60% or $67 as of last week, a relatively larger fall than normal. In contrast near luxury cars saw the lightest decline rates with a fall of just 0.04% which equates to around $6. In line with this the luxury segment and the prestige luxury segment experienced declines of just 0.14% ($28) and 0.22% (or $83) respectively. The segment worst hit by large depreciation rates was the compact car segment, which saw prices drop by 1.27% which equates to on average $99.

Based on these results Black Book editors advised that the specialty car market maintains a strong position. Analysts reported that “Auctions featuring all types of vehicles, from pre-war American Classics to European Exotics, were well attended this past month in places as diverse as the Midwest and Great Britain”. Evidence of this was seen at the Labor Day Sale in Auburn, Indianapolis. The event was attended by over 85,000 automotive enthusiasts, who between them purchased 870 cars that had a cumulative value of $20 million. While a recent Sotheby’s sale in London had total sales push over the $25 million threshold.

Director of Specialty markets at Black Book elaborated on these findings “As true vintage exotics have become too expensive for most collectors, many are turning their attention to less exclusive European makes, such as Porsche, Jaguar, and Alfa-Romeo. Many of their more desirable models, such as early 911 turbos, E-Types, and Giulias, have doubled or even tripled in value”.