Report: Cost of Vehicle Ownership - 2019 Trends
Motus will release its 2019 Cost of Vehicle Ownership Trend Report tomorrow (March 13) which reveals how new vehicle prices, residual values and depreciation directly impact the costs of owning and operating vehicles.
A few of the interesting findings:
The demand for SUVs has never been higher. 48% of all car owners who bought new vehicles in 2018 chose SUVs for their next vehicle.
In 2018, the average sale price for a used vehicle increased about 2.9 percent to $16,738. Consumers should expect new car prices to increase about 2% in 2019 as a result of increased production costs for features such as more fuel-efficient engines and transmissions and lightweight body materials.
The price of all new vehicles could be impacted if the U.S. enacts tariffs on auto parts. Analysts estimate that would add between $4,000 - $6,000 to the price of new vehicles.
The overall cost to own and operate a vehicle should decrease from 0.6% to 1% over the next 12 months.
Depreciation accounted for 32.9% of the total cost to own and operate a vehicle over the past 12 months. Vehicle owners should expect a slight decrease in residual vehicle values between 0.5-1% over the next 12 months.
The report also highlights trends including:
Several market factors influencing vehicle ownership expenses. For example, consumer preference has pushed up the average vehicle cost to $36,000 in 2018, about 3% higher than the average sale price in 2017.
How vehicle costs impact other businesses. For example, vehicle depreciation matters to employees who drive for work every day. Employers are beginning to respond to this need and ensure theyâ€™re fairly and accurately reimbursing their team for miles driven for work.