Since the beginning of 2014, America's automotive industry was hit hard by the NHTSA over various safety and non-compliance defects. Out of the total recall population, GM is king of the hill with its 28,7 million faulty vehicles. As expected, a mess-up this big has affected the selling price of older GM cars.
iSeeCars.com has recently released a study which informs about overwhelming price drops experienced by old General Motors models recalled over faulty ignition switches. The search engine that helps consumers find great used car deals assessed 6 models in this new study, finding that the average price of these cars dropped by 14 percent from March through June 2014 compared to the same period in 2013 adjusted for inflation.
"We surmise that the recalls are playing a role in motivating sellers to sell their used cars and at a lower price point that they otherwise would," has declared Phong Ly, the chief executive officer of iSeeCars.com. By comparison, the average for all similar cars stood at 6.7 percent over the period. Excluding recalled cars, the average price change from 2013 to 2014 of General Motors nameplates has fallen by 7 percent.
The guys from iSeeCars.com analyzed over 11 million used cars for sale by dealers from March to June 2013 and the same time frame of 2014. Average changes in price were calculated for each General Motors model recalled for a faulty ignition switch in February 2014, as well as all similar vehicles and then all GM vehicles. 2013 prices were adjusted to 2014 using inflation data from the U.S. Bureau of Labor Statistics.
Prices of the 2005 - 2007 Chevrolet Cobalt and 2007 Pontiac G5 dropped by 13.7 percent (2.1 times greater drop than average), while the 2003 - 2007 Saturn Ion followed with a 13.6 percent second-hand selling price decline. The 2006-2007 Chevrolet HHR took a 11.5 percent dive, while the 2006 - 2007 Saturn Sky and Pontiac Solstice were met with an average drop of 10.6 and 9.7 percent, respectively.
"We surmise that the recalls are playing a role in motivating sellers to sell their used cars and at a lower price point that they otherwise would," has declared Phong Ly, the chief executive officer of iSeeCars.com. By comparison, the average for all similar cars stood at 6.7 percent over the period. Excluding recalled cars, the average price change from 2013 to 2014 of General Motors nameplates has fallen by 7 percent.
The guys from iSeeCars.com analyzed over 11 million used cars for sale by dealers from March to June 2013 and the same time frame of 2014. Average changes in price were calculated for each General Motors model recalled for a faulty ignition switch in February 2014, as well as all similar vehicles and then all GM vehicles. 2013 prices were adjusted to 2014 using inflation data from the U.S. Bureau of Labor Statistics.
Prices of the 2005 - 2007 Chevrolet Cobalt and 2007 Pontiac G5 dropped by 13.7 percent (2.1 times greater drop than average), while the 2003 - 2007 Saturn Ion followed with a 13.6 percent second-hand selling price decline. The 2006-2007 Chevrolet HHR took a 11.5 percent dive, while the 2006 - 2007 Saturn Sky and Pontiac Solstice were met with an average drop of 10.6 and 9.7 percent, respectively.