GAINESVILLE, GA - According to research provided by Black Book, diesel powered pickup trucks have declined in value dramatically during the past several months.
Ricky Beggs, vice president and managing editor, commented “The values of larger, less fuel efficient vehicles, such as full size pickup trucks and SUVs, have been declining across the board since the beginning of the year at a rate far above their historical averages.
The hardest hit models have been the three quarter ton and one ton pickups powered by diesel engines. On average, 2005-2007 models have fallen $5,900 since January, while their gasoline powered counterparts have fallen only $3,000.”
Beggs continued “Much of this decline can be traced directly to the recent spike in fuel costs. Diesel fuel is currently selling for an average of $4.70 per gallon in the United States, with gasoline quite a bit lower at $3.97. One year ago the situation was reversed, when gasoline was averaging $3.16 and diesel fuel was only $2.80; during the past twelve months, gasoline has increased an average of 81 cents per gallon, while diesel has increased a staggering $1.90. Over the course of a year, it could easily cost $1,000 more to fill a diesel powered truck than its gasoline counterpart. Buyers are doing the math and are beginning to closely examine the total costs of ownership associated with a diesel.”
Beggs concluded that diesel engines have historically been popular power train choices for three quarter and one ton trucks due to their increased performance, better mileage, and longer lifespan.
Although fuel prices are certainly on everyone’s mind right now, continued Beggs, it’s possible that diesels have dropped more than they should have when the “big picture” is considered. The average $5900 drop in values since January represents a 20 percent to 25 percent decline in the total asset value of these vehicles.
Another factor that has certainly played a role in driving down diesel pickup’s values is the mortgage/housing crisis and the associated slowdown in construction jobs. Although many personal use trucks have diesel engines, the majority are in vehicles used by tradesmen who are especially vulnerable to disruptions in the overall economy.
The values of new and used vehicles can change very quickly in an unstable environment. Dealers and financial institutions can now keep closer tabs on the values of the vehicles on their lots and in their portfolios by using Black Book’s daily updates. Any automotive professional using a guidebook or data that is only updated monthly or bimonthly runs the risk of being off by several thousand dollars, exposing them to a significant financial risk. Black Book Daily can deliver updated used vehicle values in nearly “real time”, and should be considered an essential tool for every automotive professional.
For more information, check out: www.blackbookusa.com.