NADA Releases Study on Redesigns and Used Vehicle Prices

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Redesigns present automak­ers with their best oppor­tu­ni­ty for mar­ket growth; a lack of updates vir­tu­al­ly con­demns man­u­fac­tur­ers to stag­na­tion or decay. 2015 MY will be one of most impor­tant in recent mem­o­ry for shap­ing auto­mo­tive land­scape when 34 redesigned mod­els will hit mar­ket­place. For con­text, redesigns have aver­aged 22 per year since 1989. Changes to the design itself is high­ly sub­jec­tive, which makes it hard­er to esti­mate total redesign effect.

See NADA’s “How Redesigns Affect Used Vehi­cle Prices”

With­in Design Gen­er­a­tion 1 Year-Old Vehi­cle Usu­al­ly 15–20% More Expen­sive than 2 Year-Old:
Redesign increas­es spread sig­nif­i­cant­ly, adding anoth­er 15–20% on top of pre­mi­um already held by 1 YO mod­el.

Life Cycle Dura­tion or Num­ber of Years Since Last Redesign Affect Used Val­ues:
Amount of com­pe­ti­tion with­in a seg­ment and the qual­i­ty of design itself also have effects.

Pow­er­train Traits – HP, Torque and Fuel Econ­o­my – Also Wield Con­sid­er­able Clout:
All these fac­tors over­shad­ow issues such as reli­a­bil­i­ty, war­ran­ty and safe­ty influ­enc­ing val­ue.

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