MCLEAN, Va., Dec. 11, 2014 /PRNewswire-USNewswire/ -- According to the NADA Used Car Guide's most recent Guidelines report, vehicles sitting in driveways and used car lots managed to keep more of their value this past month, due to strong demand within the used vehicle market and a decrease in cars sold at wholesale auction.
Jonathan Banks, Executive Analyst for the NADA Used Car Guide said, "Usually wholesale auction volume decreases during this time of year ― and it did, again. This time, however, it fell even a bit more than normal." Banks went on to say, "If there are less used vehicles in the marketplace, then competition increases, and values hold a little better as a result."
Due to November's strong performance, NADA's seasonally adjusted used vehicle price index rose about 2 points over October, bringing it to 123 points. For context, the figure is almost even with last year, where the index stood at 124 points.
For December's forecast, NADA Used Car Guide analysts expect prices to fall slightly by about 1.5 percent, a normal dip for the time of year. The drop in prices can be attributed to poor performance within the compact and luxury car segments, the biggest forecasted losers for the month.
While used vehicle depreciation rates slowed to one of the lowest levels of the year, the new vehicle market was in high gear. For the 10th straight month versus the same time last year, new vehicle sales have increased, up 4 points in November over the previous month. As a result, the seasonally adjusted annual rate (SAAR) hit nearly 17.1 million vehicles.
There are a variety of factors that contributed to November's robust new vehicle sales, not limited to the use of manufacturer-to-dealer incentive spending. For the 22nd consecutive month, NADA Used Car Guide analysts observed average spending from all manufacturers to be just below $2,900.
The December 2014 Guidelines Automotive Industry Update report can be downloaded for free from the NADA Used Car Guide website, at nada.com/b2b.
Report download address (PDF): http://www.nada.com/b2b/Portals/0/assets/Guidelines/2014/Guidelines_UCG_201412.pdf
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.
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.
Ryan Morris, Sr. Manager of Public Relations for NADA Used Car Guide
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SOURCE NADA Used Car Guide