October 2017 Newsletter
Market Factors Combine to Rock Used Car Values
Resale values on used passenger cars continue to take a beating, posting an average decline of 17% over the last 12 months, according to a recent Bloomberg report.
In normal years, the decline in value tracks at roughly 10%.
Primary drivers of the downward adjustment include a glut of off-lease passenger car inventory combined with shifting demand toward compact utilities, SUVs, and pickup trucks.
Ford Announces F-150 Special Service Vehicle for 2018
Many law enforcement agencies in the U.S. have expanded the use of SUVs in their fleets, as manufacturers began offering pursuit-rated versions of the vehicles in recent years. This follows an overall national trend away from passenger cars and toward larger vehicles. Sure to spur a continued uptick: Ford’s announcement that a Police Responder version of the F-150 will be available for 2018 model year.
Modifications to the civilian version of the F-150 include vinyl seat coverings, special suspension, a column shifter, HD alternator, and upgraded brakes. These specifications are based on testing by law enforcement agencies in California and Michigan.
Ford already commands 60% of the market for law enforcement vehicles.
North American Manufacturers Race to Make Automatic Braking Standard
About 20 manufacturers of vehicles sold in the U.S. and Canada are moving to make an Automatic Emergency Braking (AEB) system standard equipment within the next few years, according to the National Highway Traffic Safety Administration (NHTSA).
The first wave includes three popular 2018 model-year vehicles from Nissan: Altima, Rogue, and Murano.
AEB technology uses a combination of radars and sensors to determine a vehicle’s proximity and position relative to other vehicles on the road. The system then alerts—and even intervenes by slowing or stopping the vehicle—if a crash is imminent.
Rear-end crashes killed 1,075 and injured 547,000 people in the US in 2012. Studies suggest about 87% of these crashes could have been avoided or abated using AEB technology.
New Safety Technologies Already Working to Reduce Crashes
Newer technologies—such as Blind-Spot Monitoring and Lane-Keeping Assist—are already making a positive impact to reduce the frequency and severity of vehicle crashes. That’s the conclusion of long- term studies published by MIT and Insurance Institute for Highway Safety (IIHS).
Notably, the technologies have made significant contributions to safety even though fully 50% of vehicles equipped with Blind-Spot Monitoring and Lane-Keeping Assist are operating with the systems turned off. Many drivers report that they find the systems’ warning beeps and vibrations bothersome.
In the IIHS study, police data showed that vehicles with lane-keeping technologies active were 11% less likely to crash, and occupants were 21% less likely to sustain an injury. The study collected data from 25 states between 2009 and 2015.
Click here to download the full IIHS Study: