MCLEAN, Va., Nov. 16, 2016 /PRNewswire/ -- Wholesale prices of vehicles up to eight years in age fell by 3.6 percent in October. The performance matches September as the largest decline recorded this year. As a result, NADA Used Car Guide's seasonally adjusted used vehicle price index fell by 0.5 percent to 117.2.
Mainstream Segment: Small Cars Lose Most Value, Pickups Perform Well
Similar to September, price movement at the segment level was led once again by small cars. In particular, subcompact car losses reached 4.7 percent.
According to Jonathan Banks, vice president of vehicle analysis and analytics at NADA Used Car Guide, "The losses in the subcompact segment were broad-based across model years, but we saw prices fall the most among GM, FCA and Ford models."
On a more positive note, large and mid-size pickup truck losses fared much better than the smallest form factor vehicle segment. Used large trucks dropped just 2.3 percent in monthly price, while mid-size pickups fell only 1.5 percent.
Larry Dixon, director of market intelligence at NADA Used Car Guide said, "While losses for large pickups were very low, October's performance was the segment's worst showing in the past year."
Luxury Segment: October Losses Were a Mixed Bag
Similar to mainstream small cars, luxury losses were led by luxury compact cars, which declined by 4.4 percent. Additional losses for October within the upscale category include price drops of 4.1 percent (mid-size cars), 3.5 percent (large utilities), 3.4 percent (large cars), 3.1 percent (compact utilities), and 2.8 percent (mid-size utilities).
In NADA Used Car Guide's recently published monthly Guidelines report, analysts forecast November prices, of vehicles up to eight years in age, to fall between 1.3 to 1.8 percent compared to October. The anticipated drop is right in line with the 1.5 percent decline averaged for the month in 2015.
Looking forward, monthly losses are expected to be around 1 percent in both December and January before increasing through February and the spring market.
NADA Used Car Guide's full-year 2016 forecast remains unchanged with prices expected to be down by an average of 4 percent on an index-basis from 2015.
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SOURCE NADA Used Car Guide