Kelley Blue Book’s Blue Market Report for December 2011 says compact cars and crossovers will remain a safe bet for dealers in the coming months with values expected to be relatively stable through year-end.
THIS MONTH’S REPORT INCLUDES:
MARKET ANALYSIS:
- Cars from Rental Fleets Appreciate in Value
Among compact and subcompact cars, vehicles that are typically found in rental fleets have appreciated most since the start of the year. The Kia Rio, Chevrolet Aveo and Chrysler PT Cruiser all increased more than 10 percent since January, while low-fleet vehicles like the Honda Civic and Toyota Corolla are flat on a year-to-date basis due to their relatively high values…
- Compact Cars and Crossovers Expected to Top Dealer Holiday Shopping Lists as Share Increases and Quality Improves
Compact cars and crossovers will remain a safe bet for dealers in the coming months with values expected to be relatively stable through year-end. With the economy still on shaky ground overall, fuel economy and affordability will remain top priorities for consumers in 2012, so demand for vehicles in these segments will remain strong…
- Dealers Should Buy Now to Remain Competitive
Dealers looking to stay ahead of the competition may want to take advantage of the buying opportunities during today’s seasonal low in auction values. Dealers that hold off on replenishing inventory until February likely will face increased competition at auction as the market heats up…
- Despite Recent Free-Fall, Compacts Remain Top Performers Year-to-Date
Values have dropped 6 percent on average since January, while subcompact and compact cars remain up 1 to 2 percent. Values of compact and subcompact cars increased more than 20 percent during 2011, finally peaking in June after fuel prices moved away from $4.00 per gallon highs. Since their June peak, values have declined nearly 17 percent ($2,000)…
- Hot December Sales Could Push Kelley Blue Book SAAR Prediction to 12.7M Units
November proved to be another strong month for new-vehicle sales and December will likely keep the momentum going. We are on pace to sell in excess of 12.5 million vehicles this year. If December sales outpace November as they have since 2007, sales for the year may hit as high as 12.7 million units overall. The only wild card that could disrupt the industry’s momentum continues to be inventory shortages that still challenge Japanese manufacturers, most notably Toyota and Honda…
- Don’t Expect Gas Price Declines to Continue
Gas prices have continued to drop since May and currently reside at $3.30 per gallon nationwide, and while they are certainly cheaper than earlier this year, fuel prices are still up $0.45 per gallon year-over-year. Although gas prices may be dropping, don’t expect the same dramatic decline that occurred in 2008, when fuel prices dropped to $1.60 per gallon by year-end. By early December 2008, fuel prices were below $2.00 per gallon, a mark we have not begun to approach. Gas prices are expected to remain elevated moving forward…
RESIDUAL ANALYSIS:
- Vehicle Redesigns and their Impact on Residual Values
One of the most dramatic ways in which a vehicle can increase its residual value is when it receives a well designed and well marketed redesign. Recent examples of redesigns that have accomplished just that include the 2010 Buick LaCrosse and 2011 Hyundai Elantra, each increasing their residual value by more than 10 percentage points. The challenge is that redesigns can be especially difficult to forecast. Unlike new model debuts, historical data exists for redesigned vehicles. However, the amount of residual value improvement each redesign achieves has been historically determined through an overly subjective process. In the pursuit of added analytic rigor, Kelley Blue Book embarked on a study of how a redesign can impact a vehicle’s residual value…
- 2012 Residual Value Analysis: Toyota Reclaims Top Spot for Best Retained Value; Compact SUVs Rise as Hybrids Fall in Residual Rankings
Kelley Blue Book www.kbb.com, the leading provider of vehicle values and forecasts, recently announced the availability of its 2012 Residual Analysis Report. Kelley Blue Book’s Best Resale Value Awards are based on projections from the Kelley Blue Book® Official Residual Value Guide, determined by a skilled staff of automotive analysts…
LATEST HOT USED-CAR REPORT:
- Kbb.com Shoppers Gravitate Toward Full-Size and Hybrid Cars, Pickup Trucks
With the holiday season in full effect, kbb.com shoppers are gravitating toward full-size cars and pickup trucks. Highlighting this shift into pickup trucks is the 2009 Ford F-250 Super Duty, which increased 54.2 percent month-over-month. Full-size cars also jumped 2.2 percent from the previous month. However, the segment with the greatest change in share is hybrid cars with a 4.4 percent increase month-over-month…
ALL-NEW ‘BLUE BOOK MINUTE’ VIDEO:
In addition, this month KBB.com has created a video with Juan Flores, director of vehicle valuation for Kelley Blue Book, detailing the latest insights into the marketplace for December. To view the latest video, click here: http://mediaroom.kbb.com/blue-book-minute
