Pickup Truck Auction Values Finish 2016 Strong Amidst Rising Fuel Prices, Expected To Face Challenges In 2017, According To Kelley Blue Book
Vehicle Auction Values Down More Than 15 Percent for 2016
IRVINE, Calif., Jan. 31, 2017 /PRNewswire/ -- The analysts at Kelley Blue Book www.kbb.com, the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry, today report that average values for 1- to 3-year-old pickup trucks have remained strong, as a result of high demand at auction, despite fuel prices peaking in December 2016, as covered in the company's Blue Book Market Report for the fourth quarter of 2016.
"Historically, fuel prices and pickup truck segments have maintained an inverse relationship," said Sean Foyil, analyst for Kelley Blue Book. "As fuel prices increase, demand for trucks tends to decline. While pickups continued to see exceptionally high demand throughout 2016, despite a 10 percent increase in December in the average cost of fuel, 2017 could turn out to be a tough year for trucks, as fuel prices are expected to continue increasing through the first quarter."
In addition to rising fuel costs and previously announced increased oil production cuts from the Organization of the Petroleum Exporting Countries (OPEC), potential interest rate hikes in 2017 may impact housing construction, which could lead to a decrease in orders of full-size pickups used in construction. Furthermore, auction supply from off-lease vehicle returns is expected to continue growing for the foreseeable future. As such, the pickup truck segments may face a more challenging year in 2017.
Overall, auction values for 1- to 3-year-old vehicles were down more than 15 percent for 2016. In just the fourth quarter, values fell a substantial 6.8 percent, or $1,146 per unit. To read the full report, please visit: http://mediaroom.kbb.com/market-report.
The Blue Book Market Report is a quarterly publication that explores the state of the automotive industry by analyzing Kelley Blue Book® Auction Values. The report also discusses trends in monthly used-car shopper activity on KBB.com. If you would like to subscribe to the quarterly Blue Book Market Report, please e-mail email@example.com.
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About Kelley Blue Book (www.kbb.com)
Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides the most market-reflective values in the industry on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Fair Purchase Price, which reports what others are paying for new and used cars this week. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book's KBB.com ranked highest in its category for brand equity by the 2016 Harris Poll EquiTrend® study and has been named Online Auto Shopping Brand of the Year for five consecutive years. Kelley Blue Book Co., Inc. is a Cox Automotive™ company.
About Cox Automotive
Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. Committed to open choice and dedicated to strong partnerships, the Cox Automotive family includes Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, vAuto®, Xtime® and a host of other brands. The global company has nearly 33,000 team members in more than 200 locations and is partner to more than 40,000 auto dealers, as well as most major automobile manufacturers, while engaging U.S. consumer car buyers with the most recognized media brands in the industry. Cox Automotive is a subsidiary of Cox Enterprises Inc., an Atlanta-based company with revenues of $18 billion and approximately 60,000 employees. Cox Enterprises' other major operating subsidiaries include Cox Communications and Cox Media Group. For more information about Cox Automotive, visit www.coxautoinc.com/.
SOURCE Kelley Blue Book
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