NADA Used Car Guide's Price Index Falls for Fifth Straight Month
As Used Car Prices Dive, Large Utility and Pickup Truck Prices Mitigate Downward Trend
MCLEAN, Va., May 17, 2016 /PRNewswire/ -- According to the May edition of NADA Used Car Guide's Guidelines report, wholesale used vehicle prices fell by an average of 1.7 percent in April largely due to a poor performance across car segments. As a result of the occurrence, NADA Used Car Guide's seasonally adjusted used vehicle price index fell for the fifth straight month, dropping by 0.6 percent from March to 118.0.
Jonathan Banks, executive analyst at NADA Used Car Guide said, "If it weren't for pickup truck prices only dropping 0.5 percent and large utility vehicle prices not really changing at all, the index dip could have been much worse."
Analysts at NADA Used Car guide note the softness exhibited over the first third of the year placed the index 4 percent below 2015's four month average and dropped it to its lowest level in more than five years.
FREE DOWNLOAD: Get the report to learn what happened in the used vehicle market.
The report also points out subcompact car depreciation was especially steep last month. Prices for the group fell by 4.3 percent, nearly double the 2.3 percent loss averaged by the two closest segments (compact and mid-size cars). The luxury large car segment trailed closely behind as prices fell by 2.1 percent. April's performance pushed year-to-date losses for the group to nearly 6 percent versus the fourth quarter of 2015; the highest in the industry.
Looking ahead, the report notes prices in June and July are expected to fall by an average of 2.5 to 3 percent. NADA Used Car Guide analysts forecast prices to be down 5 percent to 6 percent on an index-basis from 2015. This would place prices below 2011 levels and mark one of the steepest non-recession declines experienced over the past 20 years.
About 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 U.S. and worldwide. Its 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. NADA Used Car Guide® and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power and Associates.
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NADA Used Car Guide®, a division of J.D. Power and Associates
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SOURCE NADA Used Car Guide
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