Consumer Tax Refunds Help Bump Vehicle Sales

NADA Used Car Guide analysts forecast up to 2.5% price increase on used vehicles through March

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Feb 12, 2015, 01:59 ET

MCLEAN, Va., Feb. 12, 2015 /PRNewswire-USNewswire/ -- In their February Guidelines report, analysts from NADA Used Car Guide forecasted used vehicle prices to continually rise by 1 – 1.5 percent in February, potentially topping out at a 2.5 percent increase in March.

Jonathan Banks, executive analyst at NADA Used Car Guide, explains how new and used vehicle prices performed during the first month of the year and gives a brief forecast of how they'll do over the next month.

NADA Used Car Guide Logo

According to Jonathan Banks, NADA Used Car Guide's executive analyst, "The price bump in the used vehicle market is created by several factors, but one of them has to do with recently filed consumer tax returns." Banks went on to state, "Americans looking to buy their next car now have the needed funds in the form of tax refund checks. Their purchasing actions will continue to drive demand during the remainder of the quarter."

As a result of the rise in used vehicle prices, NADA's Used Vehicle Price Index has increased half a percentage point to 125. The figure is significant as it is the fifth highest figure recorded in index history.

What About New Vehicle Sales?
Consumers looking to buy a new car or truck will equally find a very active marketplace. During January, new vehicle sales accelerated by 14 percent, making it the best January since 2001. Brisk sales during the month also helped contribute to a SAAR (seasonally adjusted annual rate) of 16.6M vehicles.

Now hitting a two year streak, manufacturers have used incentive spending to assist consumers with new vehicle purchases. Average spending by manufacturers is up 1.5 percent, which is about $2,588 per vehicle.

Download the Report
The full report explaining trends and forecasts can be downloaded for free on the NADA Used Car Guide website at www.nada.com/b2b.

About the NADA Used Car Guide
Since 1933, NADA Used Car Guide has earned its reputation as the leading provider of vehicle valuation products, services and information to businesses throughout the United States and worldwide. NADA's editorial team collects and analyzes over 1 million combined automotive and truck wholesale and retail transactions per month. Its guidebooks, auction data, analysis and data solutions offer automotive/truck, finance, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. Visit nada.com/b2b to learn more, and follow our Facebook, Twitter and YouTube pages to stay up-to-date on the latest automotive industry information.

About NADA
NADA represents nearly 16,000 new-car and -truck dealerships with more than 32,000 domestic and international franchises. For more information, visit www.nada.org.

Contact:
Ryan Morris
Sr. Manager, Public Relations
NADA Used Car Guide
(703) 821-7165
[email protected]

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SOURCE NADA Used Car Guide