Used Pickup Truck Prices Remain Strong in Declining Overall Market
Pickup Prices Up 6.5 Percent as Compact, Luxury Car Prices Decline
Over the past several years, sales of new trucks have been strong, often showing double-digit year-over-year monthly gains, but it’s not just new trucks that are seeing high demand. According to an Automotive News report, auto auction company Manheim reports that in the midst of a soft overall used car market, which have seen prices of compacts and luxury sedans decline more than 3 percent, that prices of used pickups have seen a 6.5 percent increase. In September, new pickup sales were up 19 percent among a growth rate of 9 percent for new cars overall.
The uptick in prices is attributed primarily to the fact that many trucks are kept by the original owner for the life of the vehicle, are rarely leased, and don’t end up on the used market as often as cars. This leads to a very tight used market with high demand, hence the uptick in prices. Some industry analysts are predicting slower growth ahead for auto sales and used car prices in general, but with strong growth in the energy and construction sectors, demand and sales for both new and used pickups looks poised to continue growing for the foreseeable future.
Source: Automotive News