According to a new study by Black Book, the fact that there are fewer mid-sized pickup truck options on the market is driving up the retail cost of used models. During the month of June, used vehicles from model years 2007-2011 depreciated an average of 1.3 percent across the board, but midsize pickups of the same year saw their value decrease by just 0.7 percent on average. Look across the past year, and the market as a whole saw those cars depreciate by 13.7 percent while midsize pickups saw their value decline by a mere 5.1 percent.
Ricky Beggs, senior vice president and Managing Editor with Black Book, says midsize pickups are holding their value better than other products on the market due to the fact that there are so few brand-new options available. Currently, only Chevrolet, Nissan and Toyota offer midsize pickup trucks. Honda has a player in the game in the form of the Ridgeline, which is a sort of cross between a traditional pickup and a crossover, and the discontinued Ford Ranger falls into a smaller size class that no longer exists in the US.
What's all this mean to you? If you happen to have a set of keys to midsize pickup in your pocket, you've made a good investment. Don't expect to see the machine depreciate as quickly as other vehicles on the road. Conversely, if you're in the market, expect to pay a bit more than you might have expected for a non-fullsize pickup truck. Scroll down for the press release from Black Book.
Ricky Beggs, senior vice president and Managing Editor with Black Book, says midsize pickups are holding their value better than other products on the market due to the fact that there are so few brand-new options available. Currently, only Chevrolet, Nissan and Toyota offer midsize pickup trucks. Honda has a player in the game in the form of the Ridgeline, which is a sort of cross between a traditional pickup and a crossover, and the discontinued Ford Ranger falls into a smaller size class that no longer exists in the US.
What's all this mean to you? If you happen to have a set of keys to midsize pickup in your pocket, you've made a good investment. Don't expect to see the machine depreciate as quickly as other vehicles on the road. Conversely, if you're in the market, expect to pay a bit more than you might have expected for a non-fullsize pickup truck. Scroll down for the press release from Black Book.
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%
About Black Book
In business since 1955, Black Book is a provider of accurate pricing insight, mobile solutions and online vehicle trade-in valuation for the automotive industry. The company offers the industry's most accurate vehicle valuation insight to dealers, lenders, remarketers and government agencies. Black Book also provides automotive shoppers with instant and accurate credit-score estimates and trade-in appraisals, which provide the highest quality sales leads for dealers. Click here to view Ricky Beggs' weekly video series offering the latest insight in the auto market http://ow.ly/aHFD6. Follow Ricky on Twitter @BeggsBlackBook (https://twitter.com/beggsblackbook) and on Facebook http://www.facebook.com/blackbookUSA.
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%
About Black Book
In business since 1955, Black Book is a provider of accurate pricing insight, mobile solutions and online vehicle trade-in valuation for the automotive industry. The company offers the industry's most accurate vehicle valuation insight to dealers, lenders, remarketers and government agencies. Black Book also provides automotive shoppers with instant and accurate credit-score estimates and trade-in appraisals, which provide the highest quality sales leads for dealers. Click here to view Ricky Beggs' weekly video series offering the latest insight in the auto market http://ow.ly/aHFD6. Follow Ricky on Twitter @BeggsBlackBook (https://twitter.com/beggsblackbook) and on Facebook http://www.facebook.com/blackbookUSA.
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