NADA Predicts Used-Car Prices to Drop 3% in July
MCLEAN, Va., June 14, 2012 /PRNewswire-USNewswire/ -- Moderate seasonal demand will drive down prices in all used-vehicle segments over the coming months, says Jonathan Banks, senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide.
This short-term sales forecast and other industry data were released today as part of the June 2012 edition of Guidelines, a monthly report containing information and insight on car and truck prices, new and used market trends and the overall economy.
"NADA's current forecast points to used-vehicle prices dropping by 3 percent in July," Banks said.
NADA's forecast for July indicates that prices in the compact and midsize used-car segments will drop between 3.5 and 4.5 percent compared with June. Used-vehicle prices are down 1.6 percent in June compared with May, according to the NADA Used Car Guide.
"Falling gasoline prices will result in greater depreciation of compact and midsize cars, but will help moderate losses for light trucks, such as large pickups and SUVs," Banks added.
In June, prices of compact and midsize used cars declined the most by 2.5 and 2.8 percent, respectively; the remaining vehicle segments dropped between 0.8 to 1.4 percent in June.
Despite the expected level of moderation during the next two months, NADA's seasonally-adjusted forecast for the remainder of the year is still positive, with current price projections for used vehicles in all segments up 0.7 percent from June through December.
"It's important to note that used-car prices will remain at historically high levels through the end of the year, despite the expected seasonal softening," Banks said.
Click here for the June 2012 edition of Guidelines. Click here for Banks Used Car and Truck Blog.
About the NADA Used Car Guide
Over a 79-year history, the NADA Used Car Guide has earned its reputation as the leading provider of accurate vehicle valuations and auction data. NADA offers a wide range of vehicle values, including those for used passenger car, light-duty and commercial truck, motorcycle, classic car and many more specialty vehicles. Available in a variety of delivery methods, NADA's products and services are used daily throughout the auto, finance, fleet-lease, government and insurance industries. For more information, visit www.nada.com/b2b.
The NADA Story
The NADA story began in 1917 when 30 auto dealers traveled to the nation's capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealers, with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.
SOURCE National Automobile Dealers Association