For further information contact:
Eric Lawrence
(301) 317-4228
ELawrence@BlackBookUSA.com
June 5, 2008
Diesel Values Dropping Dramatically
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
$5900 since January, while their gasoline powered counterparts have fallen only
$3000.”
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 $1000 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 “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, 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% - 25% 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 TM can deliver updated used vehicle values in nearly
“real time”, and should be considered an essential tool for every automotive professional.
About Black
Book
Best known in the Automotive
Industry for providing timely, independent, and accurate vehicle pricing data,
the Black Book® family of vehicle appraisal guides (www.BlackBookUSA.com)
is published by National Auto Research, a division of Hearst Business
Media. New and used car dealers,
lenders, manufacturers, fleet remarketers, and government agencies have relied
on Black Book since 1955. Black Book
provides values for both new and used vehicles, including cars and light trucks
produced since 1946, motorcycles, ATVs, snowmobiles, personal watercraft, and
heavy duty commercial trucks and trailers.
Black Book data is published
daily in multiple electronic formats including data feeds, Internet-based
applications, hand held PDAs, web enabled cell phones, Pocket PCs, BlackBerry
and Palm devices, SmartPhones, Micro Browsers, online trade appraisal
services, and in a variety of other custom
products. Printed versions are also
available on a weekly basis. Whether
you’re buying, selling, or lending, Black Book’s mission is to provide the
Automotive Industry with timely, independent, and accurate information to help make the right decisions.