Used-truck Prices Plunge In June

fbachman · July 9, 2008

Craig Trudell

Automotive News

July 9, 2008 - 11:54 am ET

The collapse of wholesale prices for used light trucks accelerated last month.

In June, used full-sized pickups sold at auction for an average price of $8,740 -- a 25.4 percent decline from June 2007, according to auction company ADESA Inc. The average wholesale price of large SUVs plunged 27.5 percent to $10,577.

Tom Webb, chief economist for auction company Manheim, said the three "forces of evil" -- rising gasoline prices, tight credit and weak labor markets -- continued to depress used-truck prices.

"The weakness in wholesale prices is being driven solely by weaker demand," Webb said in a conference call with analysts.

In June, Manheim's Used Vehicle Value Index fell to 107.8, down 6.2 percent from the same month a year earlier.

The index measures changes in used-vehicle prices, adjusted for model mix, mileage and time of year.

While big used trucks and SUVs continued their free fall, the wholesale prices of used compact cars rose 12.7 percent in June.

Webb said wholesale prices of large SUVs appear to have reached bottom, while inventory of used large pickups needs to thin before prices stabilize.

Used compact car prices are another story.

"Compact cars have no limit to how high prices can go," he said. "There is a tremendous demand for those units."

jrrod2004 · July 9, 2008

that really does put it into perspective for all of us with full size trucks

Tucson_02Silverado · July 10, 2008

While, obviously, the used market has tanked, the article doesn't really say what the average age of the auction truck/SUV is that is being sold. That has a lot to do with the average prices. If last year the average age was 3 years and this year the average age is 4, it becomes a bit of DUH as to why the average price is lower.

A 90% of a story can be believable 50% of the time.

VMax2007 · July 10, 2008

that really does put it into perspective for all of us with full size trucks

True, but it really only affects those of us planning on selling. Which does NOT include me.

jrrod2004 · July 10, 2008

that really does put it into perspective for all of us with full size trucks

True, but it really only affects those of us planning on selling. Which does NOT include me.

I plan to make mine last forever

Zembonez · July 10, 2008

I deal with ADESA regularly. They move hundreds of thousands of used vehicles. Most are 1 - 3 years old only. Their numbers are quite scientific. Many markets are actually over 40% off from this time a year ago. I buy about 200 cars a month and now is not a time to sell a truck. I believe the market will improve once we get past all of the people who went into a trading frenzy when gas jumped up in price. There will always be a certain number of folks that over-react in any situation.

I predict truck prices will stabilize within 6 months and start to rise again. Early 2009 will be a better market. We'll just have to see.

jbannick18 · July 10, 2008

Prob why I couldn't get what i wanted when I traded in my 07 silverado, but like cueva said, i'm making this one last forever

jhm · July 10, 2008

I was watching the news a couple of weeks ago and they interviewed dealers who would not even take a SUV in trade on a new car, they said there was no point because they would just sit on the lot. One guy did say he had a wholesaler who would buy specific SUV's that are in demand in CHINA! Gas price is govt regulated there so people can afford to fill up the SUV's. I have no plans to sell my truck.

slimjim2525 · July 10, 2008

that really does put it into perspective for all of us with full size trucks

True, but it really only affects those of us planning on selling. Which does NOT include me.

Me too, I'm keeping this truck for a while.

fbachman · July 10, 2008

I believe the market will improve once we get past all of the people who went into a trading frenzy when gas jumped up in price. There will always be a certain number of folks that over-react in any situation.

I predict truck prices will stabilize within 6 months and start to rise again. Early 2009 will be a better market. We'll just have to see.

EXACTLY....and... I will add, this market will shake up all those that purchased these types of vehicles that really, probably, shouldn't have, as an increase in gas prices made it un-affordable for them. I guess that fits in to the "frenzy" you refer to above

chitownpete · July 10, 2008

Do you think any of this would or wouldnt be true if people didnt watch so much TV? Gas is $4 a gallon not $40. If the price increase hurts you that much you were living beyond your means or you bought a stupid vehicle for your needs. $4 gas is costing me like $50-75 a month more, I spend more than that at Starbucks. Gotta go, I need to prep one of my ATVs that Im gonna tow to the track this weekend. Its amazing how most of the US population is completely controlled by the media.

fbachman · July 10, 2008

Do you think any of this would or wouldnt be true if people didnt watch so much TV? Gas is $4 a gallon not $40. If the price increase hurts you that much you were living beyond your means or you bought a stupid vehicle for your needs. $4 gas is costing me like $50-75 a month more, I spend more than that at Starbucks. Gotta go, I need to prep one of my ATVs that Im gonna tow to the track this weekend. Its amazing how most of the US population is completely controlled by the media.

exactly my point. I agree with you 100%. I think a LOT of folks were/are living WAY beyond their means --- at least it is extremely evident in my area (lots of McMansions, new SUVs every two years....AND...not a stick of furniture in the house).

I would have loved to buy a truck equivalent to the one I have now 20 years ago. I couldn't afford it. I tried to live reasonably, make good choices, get some savings and THEN buy a car I really wanted, once I could stomache the expense comfortably.

My Dad always told me that you can't have it all right away. He said be smart and patient... and you will appreciate it more anyway. (he was old school) ... God love him and may he RIP.

EDIT: The ones I love are the women in my area that drive escalades, complain about gas, but are willing to spend $100+ a month on having their hair done, nails done 3 times a month, 3 trips to Starbucks every day, and paying someone $60 a crack to mow their lawn everyt week on a 1/3 acre lot. Get a grip.

Bowtie2Sierra · July 10, 2008

I with you guys. I think recent plummet in resale values for trucks is short term. Prices will stabilize in the next 12-18 months and will begin to rebound as inventory gets sold down and GM quits producing as many trucks as they once did. Trucks will always have some sort of demand by construction workers, farmers, and others who need one to pull their toys around town.

SUV's on the other hand....I'm not sure they will ever fully recover. Most of the demand for SUV's will probably shift to cars and mini-vans again...after all, that is where most of the SUV buyers came from to begin with. If they had needed a truck, they would have bought a truck in the first place.

Just my 2 cents...

slimjim2525 · July 10, 2008

Do you think any of this would or wouldnt be true if people didnt watch so much TV? Gas is $4 a gallon not $40. If the price increase hurts you that much you were living beyond your means or you bought a stupid vehicle for your needs. $4 gas is costing me like $50-75 a month more, I spend more than that at Starbucks. Gotta go, I need to prep one of my ATVs that Im gonna tow to the track this weekend. Its amazing how most of the US population is completely controlled by the media.

exactly my point. I agree with you 100%. I think a LOT of folks were/are living WAY beyond their means --- at least it is extremely evident in my area (lots of McMansions, new SUVs every two years....AND...not a stick of furniture in the house).

I would have loved to buy a truck equivalent to the one I have now 20 years ago. I couldn't afford it. I tried to live reasonably, make good choices, get some savings and THEN buy a car I really wanted, once I could stomache the expense comfortably.

My Dad always told me that you can't have it all right away. He said be smart and patient... and you will appreciate it more anyway. (he was old school) ... God love him and may he RIP.

EDIT: The ones I love are the women in my area that drive escalades, complain about gas, but are willing to spend $100+ a month on having their hair done, nails done 3 times a month, 3 trips to Starbucks every day, and paying someone $60 a crack to mow their lawn everyt week on a 1/3 acre lot. Get a grip.

That's 100% true, gotta love people sometimes.