Prices of late-model used luxury cars and crossovers dropped far more than the overall market in July because of the arrival of used 2010 luxury vehicles into the marketplace, according to Kelley Blue Book.
In July, the average price of 2006-08 model luxury cars dropped 1.5 percent from June, says Kelley's "Blue Book Market Report." Luxury cross-overs dropped 1.7 percent. The overall market in July was up 0.2 percent.
Alec Gutierrez, lead analyst of vehicle valuation at Kelley, says vehicles with a higher price tag typically depreciate faster than lower-priced vehicles. Although there aren't that many used 2010 luxury vehicles in the marketplace, he says, those that are showing up are having an impact.
"Depending on the size of the vehicle or the class of vehicle, you'll see different degrees of depreciation," Gutierrez says. "If you're looking at Mercedes-Benz, the Mercedes-Benz S class is going to depreciate more aggressively than the E class, which in turn is going to depreciate more aggressively than the C class.
"The larger and more expensive and more luxurious a vehicle is, the faster it depreciates."
Among the vehicles that showed the highest month-to-month depreciation were the BMW 7 series, down 3 percent, and Mercedes M class, down 4 percent.
Gutierrez says most of the 2010 luxury vehicles in the marketplace now are former executive vehicles and vehicles from rental companies. He says the market will not see a substantial number of 2010 models until the first half of 2011.
