Edmunds’ experts recently analyzed the March trade-in value data from three-year-old vehicles to determine which nameplates retain the greatest percent of their original value and command the highest trade-in prices. The top three vehicles were all heavy-duty pickup trucks, with the Ford F-250 Super Duty, GMC Sierra 2500HD and Ford F-350 Super Duty all holding onto 80 percent of their original value. Edmunds’ data found the average trade-in price for a 2018 GMC Sierra 2500HD is around $51,661.
The 2021 GMC Sierra 2500HD starts at $37,895, though prices can quickly go up from there with different body configurations, higher trim levels and other optional equipment applied. A GMC Sierra 2500HD in the range-topping Denali trim level, for example, starts at $67,690.
Edmunds says that reduced production output for new vehicles, brought on by the global microchip shortage, is driving up used vehicle transaction prices. Consumers who are unable to find the right vehicle in stock at a dealership are now turning to the used market, reducing used vehicle supply and in turn driving up average transaction prices among second-hand cars, trucks, crossovers and SUVs. This trend is compounding with the effects of a resurgent U.S. economy driven by the vaccine rollout as well.
“The chipset shortage is wreaking havoc on new vehicle production, but we’re also seeing surprisingly healthy car shopper demand, which has likely grown stronger in light of vaccines rolling out quicker than anticipated,” said Edmunds’ executive director of insights, Jessica Caldwell. “These two factors combined are disrupting the market in a way we haven’t ever really seen before.”
While this is making it harder for some consumers to find a good used vehicle in their price range, it’s good news for those who bought new in recent years. New vehicles are now enjoying strong residual values, reducing the amount of money lost in resale once the buyer drives away from the dealership.
“Many consumers believe the old adage that you lose half the value of your vehicle when you drive off the lot, but that is simply far from the truth today,” explained Edmunds senior managing of insights, Ivan Drury. “In fact, we’re seeing many vehicles hold a huge amount of value multiple years into ownership.”