Used Cars Prices Continue to Rise in 2012, NADA Says
LAS VEGAS, Feb. 4, 2012 /PRNewswire-USNewswire/ -- Increasing demand and a drop in the supply of used cars and trucks will lead to higher used vehicle prices in 2012, says Jonathan Banks, executive automotive analyst with the National Automobile Dealers Association (NADA) Used Car Guide.
"Consumers shopping for either a new or used vehicle will benefit this year from higher trade-in values along with loosening credit," Banks said at a press briefing during the NADA Convention and Expo in Las Vegas. "For dealers, reliance on customer trade-ins will increase as they strive to meet the challenges of growing demand in a supply-constrained market."
On a seasonally adjusted basis, the NADA Used Car Guide predicts used vehicle prices will increase by 1.8 percent by the end of the year, peaking in April and May. Used vehicle prices increased 3 percent in 2011.
"The slowing rate of depreciation on used vehicles over the course of the year will lead to even stronger trade-in values and enhance the equity that a consumer has in their vehicle," Banks added.
Banks said fuel prices hovering at $3.50 a gallon will increase demand for fuel-efficient compact and midsize cars with prices up by 2.7 percent and 2.1 percent, respectively, by the end of the year.
The NADA Used Car Guide predicts prices for large SUVs will increase by 1.4 percent this year.
"A 15 percent drop year-over-year in the used supply of large SUVs will offset the elevated price of gasoline," he said.
The NADA convention runs through Monday, Feb. 6, at the Las Vegas Convention Center. For more information, visit www.nadaconventionandexpo.org.
About the NADA Used Car Guide
NADA Used Car Guide, over its 79-year history, has earned the reputation as a leader in providing accurate and comprehensive vehicle valuation products, services and information to businesses worldwide. NADA collects and analyzes more than 1 million combined wholesale and retail auto-related transaction prices each month. NADA's guidebooks, auction data, analysis and data solutions offer automotive, financial, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. 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 dealerships with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.
SOURCE National Automobile Dealers Association