Why are truck values droping so much latly and will they ever recover?

Question

I have a 2003 Chevy Silverado Z71. I bought it with 13,900 miles on it in 2005 for 26,000. It is now worth less then 15,000 private party with less than 65,000 miles on it. WHAT A JOKE! Will prices ever recover? Why are prices so low, is it due solely to gas prices?

Answer 1

That's really not a bad depreciation rate. It might feel like a lot but there are a huge amount of cars out there - sedans included - that take harder hits annually. My car was worth $26,000 last year and this year it's worth $16,000. I do KBB approximations for fun from time to time and noticed a substantial drop since last year. Three years ago this August I purchased it for $45,000. It lost two-thirds of its value in three years.

If the prices recover, I won't be surprised. But it won't happen within the next six months and it definitely won't happen with any appreciable results for cars we purchased more than a year or two ago. Most of us will have to just take the loss and move on with things. Cars are horrible investments so it's really just a matter of getting what makes you happy and driving it until the wheels fall off. If no such car currently exists, then you consider how much of a loss you can afford and purchase accordingly.

Answer 2

There was a time not all that long ago when the only people driving pickups were farmers and construction workers.  Some delivery vehicles.

They are expensive to operate and so many have been made it's a buyers market.

Only people with a real need for a truck or the old die hards want them now.

With GMC in the news all the time you can't be sure they will be on the market at all in the future.  Many car makers have gone before.

Horses make expensive pets too Cowboy.