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John Goreham Contributing Writer, GM-Trucks.com 6-25-2018 A new study by our friends at iSeeCars looks at which vehicles had the largest decline in retained value after three years. In the crossover category, the SRX is the top vehicle in this regard with a 47% reduction in value from its new car MSRP. The second best deal on a three-year-old crossover the study found was the three-year-old Buick Enclave which sells for just under 46% of its price new. iSeeCars.com analyzed more than 4.1 million car sales to identify which models had the greatest loss in value after three years. The BMW 5 Series was the top vehicle with an incredible 53% loss in valuation. Commenting on why the SRX and Enclave found their way to this list, iSeeCars CEO Phong Ly said, “The Cadillac SRX and the Buick Enclave, make the otherwise car-dominated list in the ninth and tenth spots making them attractive options for people interested in this booming vehicle segment. Trucks and truck-based SUVs are known for having the highest value retention, which explains why these vehicle types are absent from the top 10 list. Trucks as a vehicle category depreciate 23.3 percent in three years, which is two-thirds of the 35 percent average across all vehicle segments.” The SRX was replaced by the XT5 in Cadillac’s lineup. The name change may be helping push down the vehicle’s value. “Discontinued cars typically have lower resale values than cars still in production,” explained Ly.
John Goreham Contributing Writer, GM-Trucks.com 6-1-2017 General Motors announced its May 2017 sales this week and the news overall is strong. GM is continuing to focus on profitability globally and in the Americas with positive results. One GM fact that supports this is that "...GM’s incentive spending as a percentage of average transaction prices (ATP) was 11.6 percent in May. That is equal to the industry average and lower than our 2016 calendar year average, and lower than any domestic and many Asian competitors." In other words, the huge discounts Chevy has been offering on trucks and sports cars is either settling down, or Ford and FCA US are using equally heavy discounts to move trucks. One negative effect of which is lower reported resale values since the data relies on MSPR as a starting point. Overall, GM was down about 1% for May and is down about 1% for the calendar year as well. Buick is up solidly now that it has reinvented itself as a crossover company. The Chinese-built Envision is now adding a solid 4,400 units per month to the Buick Sales totals and is its second-leading seller behind the not-made-in-the-USA Encore. LaCrosse had a strong month but is still down double digits over 2016. Buick overall is up about 30% year over year. Subtract out the new model (Envision) and Buick would be about 10% behind for the year. In the truck category, the Colorado flat compared to last year with a respectable 9.091 units sold. Silverado is down about 3%, Sierra down about 8%, and Canyon down 26%. However, one "fact" struck us as odd, and upon checking it, we feel it is intentionally misleading. GM reported, "Cadillac XT5 — up 110 percent." While this is in a way true, the XT5 this month is up that amount compared to the XT5 from 2016, it does not mention that the XT5 was relatively new to the market at that point and the SRX it replaced was also still on sale. Combine the SRX and XT5 sales (SRX sold in this past month as well since GM can't seem to completely kill it off for some reason) and the combined sales are up about 32%. However, that is also misleading as an indicator of the model's success. The XT5 has not surpassed the SRX' sales rate yet. For example, in December of 2015 Cadillac sold 7,031 SRX crossovers, significantly more than its current sales rate. The XT5 is starting to take the place of the SRX, but we can't see any strong evidence that it is more successful in the marketplace than the Cadillac model it replaced. One last footnote; GM opted to use an image of a city skyline and its logo for the sales report this month. In every past month for many years the company chose a model image as its highlight. Perhaps the message is "The individual models don't matter, it is the company that is most important..." Or maybe we are overly sensitive.