MCLEAN, Va., April 19, 2016 /PRNewswire/ -- NADA Used Car Guide analysts recently published a free report on the used vehicle market which found March's average wholesale used vehicle price rose by one percent. For context, the average bump in used vehicle prices from 2009 to 2015 was 2.7 percent, so the slight increase is a significant departure from the norm. As a result of the price performance for the month, NADA Used Car Guide's seasonally adjusted used vehicle index is down by roughly one percent from February to 118.6, the lowest level recorded since early 2011.
Jonathan Banks, NADA Used Car Guide's executive analyst, said, "We saw the index down as we closed out the first quarter of the year as well. Compared to Q1 of 2015, it was down 3.6 percent. It was the first year-over-year decline we've seen since 2009."
Increases in supply and higher new vehicle incentives are mostly to blame for the fall in used vehicle prices over the first quarter. Specifically, auction volume jumped seven percent — compared to Q1 2015 — among vehicles that were three years old or newer. In order to move new vehicles off dealer lots, manufacturers increased their incentive spending by over 14 percent for the quarter.
NADA Used Car Guide's April 2016 forecast has prices of vehicles up to eight years old falling by 1.3 to 1.8 percent compared to March. For context, prices fell by an average of 1.1 percent over the month in 2014 and 2015.
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.
Ryan Morris, Sr. Manager, Public Relations
NADA Used Car Guide®, a division of J.D. Power and Associates
SOURCE NADA Used Car Guide