NADA UCG Reports on How Vehicle Durability Has Strengthened Used Market

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Vehi­cle dura­bil­i­ty has seen sub­stan­tial improve­ments over the past 20 years, which has eased con­cerns about the long-term via­bil­i­ty of used vehi­cles and has giv­en aging used vehi­cles stronger val­ue. J.D. Pow­er and Asso­ciates’ annu­al U.S. Vehi­cle Depend­abil­i­ty Study data shows vehi­cle depend­abil­i­ty has improved by near­ly 50% in the last decade. The gap in qual­i­ty across brands has nar­rowed dra­mat­i­cal­ly in the J.D. Pow­er stud­ies. Anoth­er improve­ment has been improve­ments in engine, brak­ing and sus­pen­sion sys­tems over the past decade.

Last­ing Longer: How Bet­ter Qual­i­ty Is Affect­ing Used Vehi­cle Demand

Increas­ing Odome­ter Mileage More Evi­dence of Improv­ing Dura­bil­i­ty:
Com­pact and mid­size cars 10 years in age increased from 126K miles in 2004 to 133K in 2014.

Used Vehi­cles Play­ing a More Promi­nent Role at Fran­chised Deal­er­ships:
Deal­ers had been focus­ing on trade-ins at whole­sale, and dura­bil­i­ty has helped them expand pric­ing and mar­ket­ing.

Improved Qual­i­ty and Dura­bil­i­ty Make Late-Mod­el Used More Attrac­tive to Con­sumers:
Auto­trad­er CPO study reports 33% of new car shop­pers would con­sid­er pur­chas­ing used, up from 26% in 2012.

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