Used Full-Sized Pickup Sales Climb

By: Restyling News
Monday, May 20, 2013

Auction prices for full-sized pickups were up nearly 7 percent through the first four months of 2013, according to the National Automobile Dealers Association (NADA) Used Car Guide.
“The recovery of home values and increased residential construction, stabilizing gasoline prices and a decline in late-model supply have resulted in higher trade-in values for full-sized pickups,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide.
The average trade-in value for a three-year-old Chevrolet Silverado 1500 crew cab LT 5.3-liter, two-wheel drive is up 8 percent from last year, according to the NADA Used Car Guide. The same trend can be seen across all brands of full-sized pickups, the association noted.
Supply and demand is a key contributor to the higher values for used, full-sized pickups. The price of full-sized pickups has increased 28 percent from 2007 to 2012, and the supply of full-sized picks that are eight-years-old and older declined by 17 percent from 2007 to 2012. The association predicts the supply will decline an additional 8 percent on an annual basis in 2013.
“The late-model, used supply of full-size pickups has yet to recover from the dramatic fall-off in new-vehicle sales caused by the economic recession,” Banks said.
He noted the continued slide in supply can be attributed to demand generated by a recovering housing market. New housing starts totaled 781,000 in 2012, and the National Association of Home Builders estimates that housing starts will jump to at least 1 million units in 2013. Home prices also are up 8.7 percent over the first two months of 2013, compared to the same period a year ago, according to the S&P/Case-Shiller 20-City Composite Home Price Index.
“The increase in home prices will continue to stoke demand for full-sized pickups, particularly those in configurations most frequently used in construction applications, such as lower-priced two-wheel drive, regular-cab trucks with V-6 engines,” Banks said.