Last week, carmakers Hyundai and Kia admitted they overstated the fuel economy of vehicles sold during the last two years. Both companies said they would reimburse consumers and restate mileage estimates on specific models. While there has been talk of broader ramifications to their brand, Black Book believes this acknowledgement will have little impact on future retention values.
- Roughly 900,000 vehicles sold during the last two years were included in the overstated fuel economy admission. Drivers of these vehicles will be issued a debit card for reimbursement, expected to average approximately $88 based on a car that averaged 15,000 miles this year.
- Black Book did not see retention and vehicle values on used models change noticeably on Toyota cars impacted during the large recalls of 2008-2009. These vehicles continued to follow segment trends.
- Larger market drivers will continue to impact vehicle values going forward. The Hyundai Sonata is part of the compact cars vehicle segment, which has a current overall segment average of $7,176 today and down -6.9% since the end of August ($7,710).
- The Hyundai Elantra is part of the upper mid-size car segment, which has a current overall segment average of $9,075 today and down -6.1% since the end of August ($9,662).
About Black Book
In business since 1955, Black Book is a provider of accurate pricing insight, mobile solutions and online vehicle trade-in valuation for the automotive industry. The company offers the industry’s most accurate vehicle valuation insight to dealers, lenders, remarketers and government agencies. Black Book also provides automotive shoppers with instant and accurate credit-score estimates and trade-in appraisals, which provide the highest quality sales leads for dealers. Click here to view Ricky Beggs’ weekly video series offering the latest insight in the auto market http://ow.ly/aHFD6. Follow Ricky on Twitter @BeggsBlackBook (https://twitter.com/