An interesting side effect of the recent decline in used pickup truck values is the potential for more salvage titles.
As cited in the blog below, a three-year-old Chevy Tahoe might have fetched $19,700 in September 2007. Today, a three-year-old Tahoe might be worth $16,400 at trade-in. That same math can be applied to used pickup trucks.
A salvage title is a vehicle with 75% or more damage of its value before the accident. The amount of damage would have been $14,775 in 2007. Now, the threshold is reached at $12,300 in 2008 – or what would have been 62% of the value in 2007.
Auto body costs are rising just like everything else. As pickup and SUV values decline, you’re going to reach a point where these vehicles are branded salvage with a lot less damage. There could be some real savings out there if you do your homework.
2004 Ford F150 Photo © Ford