Banks: New-Car Success of 2013 Accord, Fusion Carries Over to Used Value Strength
Here’s some good news if you’re a dealerwho sells certain Ford Fusions or Honda Accords.
The 2013 model-year editions of these vehicles have not only been “winners” on the new-car sales and market-share growth fronts, but they’ve also retained more value on the used-car side than any other cars in their segment.
That’s according to a recent post on the Used Car & Truck Blog from NADA Used Car Guide’s Jonathan Banks.
The blog delves into a host of redesigns that have occurred in the segment over the past few years, a group that includes the aforementioned 2013 Fusion and Accord plus six others spanning the 2011 through 2013 market years.
Banks notes that “eight of 14 models in the segment have been completely overhauled within the last three model years,” then touches on what has made the 2013 Fusion and Accord successful redesigns.
“The success of each redesign can be measured in a variety of ways, with new-vehicle sales and market share growth being two of the most obvious,” Banks said. “Focusing primarily on models redesigned for the ’13 model year, so far the winners in these categories have been Ford’s Fusion and Honda’s Accord.”
He added: “On a prior year basis, sales of the extensively re-worked and much-talked-about Fusion grew by 13.4 percent over the first seven months of year, and its share of total segment sales increased from 11.4 percent to 12.5 percent.
“Sales growth for Honda’s more conservatively styled but highly acclaimed Accord has been even more impressive, with deliveries up nearly 19 percent year-to-date and share improving by two percentage points to 15.1 percent. Sales and share for Nissan’s Altima have improved by more muted figures of 7.4 percent and a half-point, respectively, while the Chevy Malibu has had deliveries fall off by nearly 20 percent and share tumble from 10.9 percent to 8.5 percent.”
This strength within the new-car market, of course, impacts how these cars fare when it comes to their values within the used market, as Banks pointed out.
For example, the August edition of the Official Used Car Guide indicates that the 2013 editions of the Ford and the Accord each pulled in a used value retention level (used average trade-in value divided by typically-equipped MSRP) of 81 percent.
No other car in the segment was higher.
“As you’d expect, the positive or negative movement observed on the new side of the market has largely translated over to used-vehicle prices,” Banks said.
To read his complete analysis and see tables breaking down midsize cars, visit the blog entry here.