Black Book: Pickups Represent Growth Opportunity
The full-sized pickup segment is expected to perform exceptionally well over the next 24 months, according to data from Black Book Lender Solutions.
Black Book analyzed historical vehicle segment data and has developed projected retention levels for the next 12 to 24 months. The analysis showed that in addition to pickups, full-size CUVs are expected to make a strong showing.
“In the past, we’ve used a lot of historical data to try to predict what the values will be down the road —whereas now we’re using that historical value, but we’re also looking at our residual values which really gives [lenders] a much clearer picture of what to expect over the next two years,” Jeff Bunch, VP of Black Book Lender Solutions, told F&I and Showroom.
Compact, mid-size and full-size pickups have enjoyed strong retention during the past 12 months, and over the next two years should offer a strong growth opportunity for auto lenders looking to expand their portfolios, according to the company. For full-sized pickups, the average retention over the past year was at 95.22 percent. Mid-size and company pickups were at 94.97 and 94.78 percent, respectively. The average for all three segments for 24 month retention hovered between 69 and 71 percent.
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