Staff Writer - CheersandGears.com
July 1, 2013
If you been looking at used midsize trucks and wondering why the prices are somewhat high, a new study has an answer to that.
According to Black Book, the deprecation rate is much lower on midsize trucks than the whole used car market. In June, used cars as a whole saw a deprecation hit of 1.3 percent. In that same time, midsize trucks saw a 0.7 deprecation hit. Look over the past year and the margin grows wider. Used cars deprecated 13.7 percent, while midsize trucks deprecated 5.1 percent.
What's the cause? Ricky Beggs, senior vice president and Managing Editor with Black Book says the reason is due to so few brand-new midsize trucks available. Currently the only midsize trucks on the market include the Chevrolet Colorado, Nissan Frontier, and Toyota Tacoma.
Source: Black Book
Press Release is on Page 2
Lack Of New Model Options Drives Used MidSize Pickup Prices
Used vehicles depreciated a very moderate -1.3% across all segments during June. However, the Midsize Pickups category saw very limited depreciation, with just a -0.7% monthly change for model years 2007-2011.
The difference in depreciation is even more noticeable when the twelve-month depreciation rate is compared. Used vehicles overall have depreciated -13.7% during the last twelve months. However, Midsize Pickups have seen just a -5.1% change during the same time period. Average prices on Midsize Pickups currently stand at $15,630 compared with year-ago prices of $16,470.
The 2010 model year Midsize Pickups saw particularly low depreciation over the last twelve months, with just a slight change of -3.7% from original prices.
The fan-favorite Midsize Pickups category includes vehicles such as the GMC Canyon and Chevrolet Colorado (which currently are no longer sold as new), Dodge Dakota and Honda Ridgeline.
According to Ricky Beggs, Midsize Pickups are showing strong price retention mostly because a lack of model options at new retail have driven up demand for the vehicles. "Manufacturers shifted more production to the Fullsize Pickups during the last several years because of their profitability, versatility and improved fuel economy, and they have not replenished models that were discontinued."
Here is the complete breakdown of value changes of used cars and Midsize Pickups (2007-2011):
Vehicle 7/1/12 6/1/13 1M Chg 7/1/13 3M Chg 12M Chg
5-Year Average Used $20,428 $17,874 -1.3% $17,636 -2.4% -13.7%
5-Year Average MPT $16,470 $15,733 -0.7% $15,630 0.2% -5.1%
2011 Model Year MPT $21,088 $20,256 -0.3% $20,188 0.2% -4.3%
2010 Model Year MPT $19,355 $18,745 -0.5% $18,645 0.5% -3.7%
2009 Model Year MPT $16,579 $15,717 -0.6% $15,625 -0.9% -5.8%
2008 Model Year MPT $14,604 $13,888 -0.9% $13,758 0.6% -5.8%
2007 Model Year MPT $12,746 $12,071 -1.0% $11,954 0.6% -6.2%