Toyota Tundra Tops NADA Guides Best Retained Value List – Low Sales?
The National Automotive Dealers Association has published a report stating the Toyota Tundra has the best retained value among full-size trucks. NADA claims this is because of low sales. Are you buying that?
In the March edition of NADA Perspective, a story proclaims full-size trucks have the highest retained value of all three-year-old light duty trucks and SUVs at 62.5%. This tops all other segments including mid-size vans who have the worst rating of 49.2%.
“Americans have always had a penchant for pickups,” said Jonathan Banks, executive automotive analyst of NADA Used Car Guide, according to a press release. “A recovering housing market, better fuel economy and a wide range of trim levels have helped increase demand and keep retention values among the highest in the industry.”
If you don’t know, NADA publishes a Kelley Blue Book type guide on vehicle values. The NADA guide is mainly used by dealerships to determine value on vehicles including those being traded in.
For the retention rate survey, NADA looked at the MSRP of vehicles sold without incentives or rebates and divided that against a three-month average (Jan. 2014 – March 2014) of NADA’s average trade-in value.
Here is the complete list of full-size trucks and their retention rate according to NADA.
|Rank||Make||Model||Generation Lifecycle||Retention %|
While the Toyota Tacoma lead all vehicles with a 80.7% retained value – no surprise there – NADA says the Tundra has a 71.6% retention rate. This rate is more than 6% better than the nearest competitor, the Chevy Avalanche. Not so fast, NADA says this is because “the Tundra lags its domestic competition in sales by a considerable margin.”
Sure, the Tundra doesn’t sell as many units as the other manufactures, but that doesn’t mean it is a poor product. Consider the Nissan Titan at 53.1% – the segment’s basement dweller. Nissan’s full-size truck doesn’t sell as many units either and it is on the bottom. If we were to believe NADA’s conclusion of low trucks sales and thus used truck inventory is driving up prices, then the same would have to be same for the Titan. This is clearly not the case.
It is great that the NADA guide recognizes the value of the Tundra. We just wish it were for the right reasons.
What do you think? Is our opinion on NADA’s conclusions accurate?
Click here for the press release.
Filed Under: Tundra News