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Recalls have almost no effect on Used Car prices
This has been a bad year for recalls. The US auto industry broke the record for repair campaigns months ago, and with about 25.8 million vehicles needing fixed, General Motors has gotten close to 2013's total full-year figure of 27.96-million recalled cars all on its own. You might think that used car buyers would run screaming for the hills from all these faulty models, but a recent study finds the exact opposite to be true. In fact, one of The General's vehicles actually gained value slightly, despite all of the negative publicity.
The report from Black Book Lender Solutions examined residual values for several vehicles from major recalls. They included the 2005-2007 Chevrolet Cobalt that was among the most prominent affected models earlier this year. The study found that the campaigns had almost no effect on a vehicle's deprec..., even those with major press coverage, according to Automotive News. Amazingly, in the case of the Cobalt, the price of 2005 and 2006 examples actually increased by about one percent in the first half of 2014 compared to the same period last year, according to the investigation.
The results weren't limited to just GM, either. The 2008-2009 Toyota Camry from the unintended acceleration recall had a lower depreciation rate amid the campaign in February 2010 than its competitors of the same year, according to Automotive News.
These outcomes echo similar data from other sources. In terms of new cars, Autoblog's By the Numbers info shows GM sales have grown on five of the seven months with data in 2014. The month with the biggest loss was January, before the ignition switch recall was even announced. In June, another investigation found thatthe company's used car prices were still staying strong, and one company showed the recalled 2012 Chevy Impala also appreciating slightly. It certainly appears that the campaigns don't weigh on many consumers' minds when buying a vehicle.
The report from Black Book Lender Solutions examined residual values for several vehicles from major recalls. They included the 2005-2007 Chevrolet Cobalt that was among the most prominent affected models earlier this year. The study found that the campaigns had almost no effect on a vehicle's deprec..., even those with major press coverage, according to Automotive News. Amazingly, in the case of the Cobalt, the price of 2005 and 2006 examples actually increased by about one percent in the first half of 2014 compared to the same period last year, according to the investigation.
The results weren't limited to just GM, either. The 2008-2009 Toyota Camry from the unintended acceleration recall had a lower depreciation rate amid the campaign in February 2010 than its competitors of the same year, according to Automotive News.
These outcomes echo similar data from other sources. In terms of new cars, Autoblog's By the Numbers info shows GM sales have grown on five of the seven months with data in 2014. The month with the biggest loss was January, before the ignition switch recall was even announced. In June, another investigation found thatthe company's used car prices were still staying strong, and one company showed the recalled 2012 Chevy Impala also appreciating slightly. It certainly appears that the campaigns don't weigh on many consumers' minds when buying a vehicle.
Originally appeared on Autoblog
Throwback Thursday: What's your Favorite Car Film of All Time?
With the conversation about the Jalopnik Film Festival starting soon, and lasting at least three months before the big day, we should start by compiling an official canon of all of our favorite car films, action sequences and clips. Think of these as the benchmark cuts.
Throwback Thursday: Car companies used to cook up sales with recipe books
Automakers these days can commune with fans in myriad ways beyond traditional advertising, from tweets and YouTube videos to discussion boards, Instagram and Vine.
Those are the 21st century methods corporations use for staying on a first-name basis with prospective customers and for keeping their images spruced.
In decades past, car companies, like so many other consumer product makers, wooed public goodwill in a folksier fashion: recipe collections. Article
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Yes Mike!
Good to connect Mike
Kaan
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Hi Mike, Thank you for the welcome. Feel free to share ALL your experiences! I will do my best to be a positive influence on others and their successes! :)
Hello Mike! Thank you so much for welcoming me! I look forward to learning from you and the other members and share my knowledge as well.
Best regards,
Tamara
Thanks for the welcome Mike. I hope I can contribute in a positive way.
Best wishes,
Brian
Hi Mike,
Thanks for the invite, I look forward to working with you to support the INSIGHT15 conference.
Thanks for the invite Mike, I'm proud to have become a part of the automotive sales industry and a part of this awesome resource. Looking forward to tapping into the vast knowledge and experiences of members like yourself, as well contributing my own, as I grow.
Thanks for the invite. I am enthusiastically looking forward to share all this good stuff with you and others.
Best rgds
Harry
Hi Mike, Great page seems very informative. I'll have to take some time and review, ! Thank YOU for the invite.
My Best, Danny
Thank you Mike for the welcome. Hope to be a valuable addition to this sight!!!
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