6/23/2014 - SUVs and pickup trucks retain value
When it comes to the vehicles that hold on to their value for the longest period of time after they're purchased, large pickup trucks and SUVs set the industry standard, a new analysis suggests.
Large pickup trucks and SUVs are among the vehicles that have robust retention values, averaging nearly 63% combined, according to the National Automobile Dealers Association.
Jonathan Banks, executive automotive analyst for NADA Used Car Guide, noted that these types of vehicles seem to hold a special place in consumers' hearts.
"Americans have always had a penchant for pickups," said Banks. "A recovering housing market, better fuel economy and a wide range of trim levels have helped increase demand and keep retention values among the highest in the industry."
The specific pickup truck with the highest retention value was the Toyota Tacoma, averaging approximately 81%. Meanwhile, at 41%, the lowest was the Suzuki Grand Vitara.
Banks added that hybrid SUVs and pickup trucks also hold on to their worth for an extended period of time, yet not quite as long as classes like the midsize and large. However, compared to the hybrid cars, retention value was six points higher.
This may explain why fewer people have to update their auto insurance policies after purchasing another car. AutoMD.com revealed recently that lengthy vehicle ownership is standard operating procedure nowadays, as 80% of consumers said that they held on to their car for more than 10 years. Experts at the automotive repair resource indicated this trend has continued despite an improving economy.
For tips on when it's a good time to update a car insurance policy, ask your local Selective agent.