Despite Production Halt, Analysts Expect Chevy Avalanche’s Used Value to Hold
Even though Chevrolet decided to no longer manufacturer the Avalanche after 2013, analysts believe the unique pickups should hold up well within the used-vehicle market.
Late last week, Chevy officials indicated they are celebrating the model’s final year in production with the 2013 Black Diamond Avalanche.
The brand highlighted Black Diamond Avalanches will feature body-colored bed surrounds, a unique badge on the sail panel, additional features on LS and LT models, and lower prices across the lineup.
But what about the units that might be passing through the auction lanes or are already in a dealer’s used inventory?
“In terms of used-car values, I would expect to see values of the Avalanche remain relatively firm,” stated Alec Gutierrez, Kelley Blue Book’s senior market analyst of automotive insights.
“It’s a relatively low volume truck with no true substitute available today,” Gutierrez continued. “Parts availability will not be an issue since it shares so many components with the Silverado and Tahoe.”
Fellow KBB analyst, Eric Ibarra, the firm’s director of residual consulting, touched on the potential residual impact of Chevrolet’s decision.
“The conventional wisdom is the used-car value would drop, but what we’re seeing is that hasn’t been happening,” Ibarra emphasized. “We think it’s because when a vehicle is discontinued it loses the incentives that are found when it’s being sold new. The incentives have an effect in lowering the value on the vehicle. And if you remove that, then it removes the downward pressure on used-car prices.
“I think there may even be an expectation that Avalanche used-car prices are going to drop, but I think there is good reason to believe that will not happen,” he continued. “It’s held up fairly well despite the fact it’s sort of a specialty vehicle. It’s not in the mainstream of trucks.”
When introduced for the 2002 model year, brand officials insisted the Avalanche offered unique styling and innovative features like a midgate that extended the bed into the cab.
“Perhaps more important, its overall design proved to be one of those rare ideas that change a segment — a light-duty pickup with comfortable accommodations for five people,” Chevy highlighted.
The brand noted this concept of a well-equipped light-duty pickup that could tow, haul, and carry the family attracted enough interest to generate 93,482 sales in 2003, its third full year of production.
Recognizing the appeal of the Avalanche, Chevrolet and other truck makers began developing light-duty crew cab pickups.
By 2011, the automaker computed crew cabs accounted for more than 65 percent of light-duty pickup sales, and helped transform the pickup from a workhorse into a true multipurpose family vehicle.
Chevrolet pointed out Avalanche retained a core of passionate fans who loved its style, comfort and versatility. Avalanche was named 2002 Motor Trend Truck of the Year upon its introduction and 2007 Truck of the Year by the Automotive Journalists Association of Canada.
Mark Clawson, Avalanche marketing manager, pointed out, “More than 580,000 Avalanches have been sold since its introduction in 2001, and Avalanche has won major awards and recognitions throughout its run. So it is only fitting that Avalanche retires on a high note.”
Edmunds.com senior analyst Michelle Krebs also shared her assessment of the vehicle.
“The Chevrolet Avalanche was one of the earliest forays into re-inventing the traditional pickup truck,” Krebs surmised.
“It was a vehicle that maintained the traditional truck image and capability but was more versatile for the person buying it for personal use more than work — a lifestyle truck more than a work truck. Other variations on the theme from competitors followed the Avalanche’s debut,” she went on to say.
Chevrolet highlighted that for 2013, a rear camera, rear park assist, power adjustable pedals, fog lamps and remote start will be added as standard equipment on LS models, while LT models have added a standard rear camera.
Officials mentioned base prices have been reduced $2,500 (after equipment adjustments) with the 2WD Avalanche LS now starting at $ 35,980, plus $995 dealer freight charge.
“Although Avalanche sales have tapered off in recent years, as crew cabs have grown to dominate Silverado sales, we know there are many Avalanche enthusiasts among Chevy customers,” Clawson stressed.
“The Black Diamond Avalanche is our way of saying ‘Thank you’ and making it just a little more attractive to own one more Avalanche,” he added.