MCLEAN, Va., Aug. 19, 2019 /PRNewswire/ -- In the August 2019 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note the used vehicle market continues to perform strong into the summer months of 2019. Through July, used vehicle prices are on average 2.1% greater than during the same 7-month period in 2019. As a result, the J.D. Power Valuation Services' Seasonally Adjusted Used Vehicle Price Index increased by 0.6% – relative to June – to 122.7.
Highlights from the free monthly report point out:
- Wholesale Prices Decline in July
- Prices down by an average of 0.8%
- Used Vehicle Price Index Increases
- Index reaches 122.7
- New Vehicle Sales Decline
- New sales down 1.6%, SAAR reaches 16.9M
- Incentive Spending Increases
- Incentive spending up 5.8%
"Used price growth this year can be attributed to a few primary factors including higher new vehicle prices and affordability concerns, high levels of clean late-model off-lease units entering the market and increased dealer demand for used vehicles," said David Paris, Executive Analyst at J.D. Power Valuation Services. "From where prices are currently through the remainder of the year, we are expecting a mild decline, which barring any serious economic changes or a dramatic shift in new vehicle incentive strategies should hold true. Credit conditions and incentives are expected to apply additional downward pressure, while used supply will be mixed, positive for cars, negative for SUVs and trucks."
J.D. Power Valuation Services (formerly NADA Used Car Guide) is a leading provider of vehicle valuation products and services to businesses. The team collects and analyzes more than 1 million automotive and truck wholesale and retail transactions per month, and delivers a range of guidebooks, auction data, analysis and data solutions.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.
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SOURCE J.D. Power