Press Release

Pickups Pose Auto Lender Growth Opportunities Next 24 Months

 
 
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Black Book Lender Solutions analyzed historical vehicle segment data and has developed projected retention levels for the next 12 to 24 months. Below is the breakdown of projected retention across all 24 segments, with analysis of the segments expected to outperform and underperform.

 

Pickups Remain Strong

 

Compact, Mid-Size and Full-Size Pickups have all enjoyed strong retention during the past 12 months and are expected to continue to outperform during the next 12-24 months, offering a strong growth opportunity for auto lenders looking to expand their portfolios.

 

“Pickups are expected to remain strong for auto lenders during the next two years particularly since the service industry is picking up from an economy that wants to improve,” said Jeff Bunch, VP of Black Book Lender Solutions. “There continues to be low supply due to manufacturer cutbacks in those segments during the downturn.”

 

Premium Sporty Cars will outperform the average vehicle retention rates over the next 12-24 months because of less supply currently in the market.

 

Crossovers Less Competitive Than SUVs

 

Full-Size CUVs such as the GMC Acadia, Buick Enclave, Ford Flex and Cadillac SRX will also outperform average retention. Consumers are replacing Full-Size SUVs with vehicles in this segment, which also has low supply and is less competitive than the SUVs.

 

 

Entry-Level Cars & Mini Vans To Underperform

 

Entry-Level Cars are projected to underperform average retention levels in the next 12-24 months. Vehicles in this segment include the Chevrolet Aveo, Honda Fit, Toyota Yaris and Hyundai Accent. Fuel prices have remained steady and greater fuel efficiency from mid-size segments is pulling customer demand.

 

Passenger Mini Vans are also projected to underperform in the near term as the popularity of crossover segments pull more customer demand and vehicle replacement.

 

Here is the complete segment breakdown according to Black Book Lender Solutions:

 

Segment

 

Average of past 12 month retention

 

Average of 12m retention

 

Average of 24m retention

 

Full-Size Pickup

 

95.22%

 

80.47%

 

68.85%

 

Mid-Size Pickup

 

94.97%

 

81.55%

 

70.13%

 

Compact Pickup

 

94.78%

 

81.73%

 

71.09%

 

Full-Size Van Cargo

 

90.97%

 

76.07%

 

62.52%

 

Compact SUV

 

90.83%

 

79.88%

 

67.73%

 

Full-Size Vans Wagon (Pass)

 

90.31%

 

77.30%

 

63.63%

 

Full-Size SUV

 

88.52%

 

79.19%

 

65.66%

 

Mini Van Cargo

 

87.95%

 

78.65%

 

64.31%

 

Mid-Size SUV

 

87.76%

 

80.49%

 

66.61%

 

Luxury SUV

 

86.87%

 

80.56%

 

67.28%

 

Sporty Car

 

86.31%

 

80.85%

 

68.50%

 

Compact CUV

 

85.76%

 

81.05%

 

67.86%

 

Mid-Size CUV

 

85.37%

 

80.38%

 

67.47%

 

Luxury Level Car

 

85.22%

 

80.21%

 

66.48%

 

Premium Sporty Car

 

85.06%

 

82.08%

 

69.28%

 

Near Luxury Car

 

84.10%

 

80.03%

 

66.63%

 

Full-Size Car

 

84.01%

 

81.04%

 

68.41%

 

Prestige Luxury Car

 

83.31%

 

79.90%

 

65.74%

 

Mini Van Wagon (Pass)

 

83.22%

 

78.04%

 

63.90%

 

Full-Size CUV

 

82.95%

 

82.60%

 

69.47%

 

Upper Mid-Size Car

 

81.95%

 

80.90%

 

67.71%

 

Entry Level Car

 

81.23%

 

77.91%

 

64.75%

 

Compact Car

 

80.86%

 

80.62%

 

67.62%

 

Entry Mid-Size Car

 

78.22%

 

80.02%

 

66.36%

 

Grand Total

 

85.90%

 

80.25%

 

67.19%

 

About Black Book

 

In business since 1955, Black Book is a provider of accurate pricing insight, mobile solutions and online vehicle trade-in valuation for the automotive industry. The company offers the industry’s most accurate vehicle valuation insight to dealers, lenders, remarketers and government agencies. Black Book also provides automotive shoppers with instant and accurate credit-score estimates and trade-in appraisals, which provide the highest quality sales leads for dealers.

 

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