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Data from both Jumpstart Automotive Media and Black Book supports how car shoppers are increasingly looking at used vehicles over new in 2018.
According to Jumpstart, 33.6% of all visitors to Jumpstart partner websites are now researching used makes and models (66.4% new). This compares to 30.1% a year ago (69.9%). The largest month for used vehicle research came in May when 35.2% of visitors were looking at used vehicles. "As prices of new vehicles creep up and incentives continue to shrink, it's expected that consumers will increasingly research and consider used vehicle choices—especially in the 1 – 3 year old age range—which today have quality and features that compete heavily with new models," said Colin Thomas, senior analyst, strategic insights & analytics for Jumpstart.
Visitors Researching New: 66.4%
Visitors Researching Used: 33.6%
Visitors Researching New: 69.9%
Visitors Researching Used: 30.1%
*Data comparing October 2018 vs. October 2017
Black Book, which is a sister resource to Jumpstart where both are a division of Hearst, has seen its Used Vehicle Retention Index rise or remain unchanged in every month during 2018 except for March.
According to Black Book data, average used vehicle depreciation over the last 12 months registers just -12.5%. This compares to -13.2% last year and -16.8% this time during 2016. "There are many choices of gently used vehicles with exceptional value, especially in the sedan categories, as a result of the rising off-lease volume over the last few years," said Anil Goyal, executive vice president, operations, for Black Book.
Which segments of used vehicles are experiencing the most demand currently? The segments with the highest month-over-month gains in the Black Book Retention Index during November were:
Mid-size Luxury Crossover/SUV: +0.8%
Sub-compact Car: +0.6%
Mid-size Car: +0.5%
Premium Sporty Car: +0.5%
Luxury Car: +0.4%
Please let me know if you'd like more information, or if you'd like to schedule a call with Colin Thomas from Jumpstart and Anil Goyal from Black Book.