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Used Vehicle Prices Climb Higher As Sales Pace Slows
The higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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SEARCHMENUSEARCHThe higher prices at used retail reflect strong wholesale values earlier in the spring, particularly for older, more affordable vehicles.
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Used vehicles fell 12.1 percent in value during 2014, which represented a slight improvement from 2013, which saw a 12.8 percent depreciation, according to Black Book.
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A Texas plumber's Ford F-250 has found a second life as a vehicle used on the front lines of the Syrian Civil War.
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The Chrysler Group has changed its official name change to FCA US, the company announced on Dec. 16.
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Although the overall fleet vehicle market depreciated by 12.1 percent over the previous year, the depreciation rate for cars was 14.8 percent and is expected to increase in 2015.
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The full-size pickup fleet segment depreciated by only 4.9 percent over the past 12 months; however, this rate is unlikely to continue into 2015.
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The used full-size van market has remained strong throughout 2014, but it is expected to decline in 2015. Part of the reason for the strength of the used van segment is the discontinuation of traditional U.S.-style vans by OEMs as the new European-style vans are released.
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The average price of a used vehicle fell 1.9 percent in November from the prior month led by steeper-than-expected declines by full-size pickups, according to Black Book.
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The vehicles should finish the year as the only category that will increase in residual value, while the broader market should depreciate more than 12 percent.
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For the first time, compact and full-size commercial vans were included in the award's 26 recognized vehicle segments.
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Domestic cars lost the most in value at 3.2 percent among vehicles from the 2009-2013 model-years, while domestic trucks lost 2.1 percent. Compact pickups and full-size passenger vans and full-size cargo vans showed the most strength.
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