Full-size pickups continue to set the pace in the used, light-duty vehicle market, according to a pair of recent automotive industry reports.
For the 2014 model year, trucks continue to hold their value better than cars, says the 2014 Residual Analysis Report from Kelley Blue Book.
The average 60-month residual value across all trucks came in at 41.7 percent compared to the 37.8 percent average across all cars, KBB reports. Pickup truck segments, both mid-size and full-size, have the highest segment residual values after five years.
Taking the honor for Best Full-Size Pickup Truck is the 2014 Toyota Tundra.
“The full-size pickup truck segment is one of the most hotly contested segments in the automotive industry. Many customers are loyal to one specific brand for a number of reasons,” KBB says. “While it may not have a diehard following like the Big Three, the Toyota Tundra delivers a big dose of quality, reliability, and safety. It also doesn’t hurt that the Tundra is built right here in the United States, too. These features and more have helped the Toyota Tundra earn a 2014 Best Resale Value Award.”
A base price of just under $26,000 pegs the 2014 Tundra $2,000 to $3,000 above the rest of the competition, but more equipment and class-leading resale values work in the Toyota’s favor, the report adds. KBB puts the Tundra’s Resale Value after 36 months at 63.7 percent, and after 60 months at 52.3 percent.
All-new for the 2014 model year, the Chevrolet Silverado 1500 is the second-place finisher. The Chevy “still brings its lunch pail attitude, but now offers a luxury alternative in the form of the High Country trim,” the KBB review says. Resale Value at 36 months is 59 percent, and at 60 months is 50.6 percent.
In third, also all-new for 2014, the GMC Sierra 1500 “still brings the luxury touches but now offers class-leading fuel economy with its V8 engine.” Resale Value at 36 months is 58.4 percent, and at 60 months is 50 percent, KBB says.
More broadly, used car prices have hit their lowest levels in four years. But for better or worse, used full-size pickups were the only category in Edmunds.com’s Used Car Market Quarterly Report that showed a price increase in the third quarter.
Still, the data suggests that the used car market is finally softening after years of “notoriously” elevated prices.
According to Edmunds.com, the average used car sold by franchise dealers in the third quarter was 2.8 percent lower than in the previous quarter, and 0.9 percent lower than in the third quarter of 2012. The last time used car prices ran so low was in the third quarter of 2009.
“Now that the new car market has hit its stride, buyers are no longer drawn to used cars the way they have been in recent years,” says Edmunds.com’s Director of Used Car Analysis Joe Spina. “Used car prices will likely continue to decline in the coming months simply because there will be more of these vehicles sitting on dealer lots.”
While softer prices are a good sign for used car buyers, Edmunds.com points out that prices still are higher than they were before the recession. Average used car prices crossed the $15,000 threshold for the first time at the end of 2009, and have remained above that level since. At their peak, used car prices averaged $16,473 in the second quarter of 2011.
The average used full-size pickup price for the quarter was $19,498, or 0.2 percent higher. Compared to a year ago, used truck prices are up 6.2 percent, trailing only the increase in used van pricing, which climbed 9 percent from last year, according the Edmunds.com data.
The Chevy Silverado 1500 held on as the best selling full-size pickup for the quarter. The Silverado and the Ford F-150 were ranked fourth and fifth, respectively, among all used vehicles sold.
The average days-to-turn (DTT) for used full-size pickups was 38, down 0.8 percent for the quarter and 3.5 percent from the year before. By comparison, vans took an average of 43 days to sell, but that’s 4.5 percent decline from the year before. Knowing the time a vehicle sits on the used lot often indicates a dealer’s willingness to negotiate: makes and models that turn quickly will have a higher sale price compared to those that sit longer, the report explains.
Compact trucks posted the fastest turns in the quarter, with DDT almost four days faster than last year. GMC, Chevy and Ford no longer sell a new compact truck but there is still a market for them, the report notes.