Used Wholesale Prices Continue Spring Decline

Tue, 05/28/2013 | McLEAN, Va.
By: Auto Remarketing Staff

Used-vehicle prices at auction are continuing their spring decline this month, falling by an average of 1.5 percent during the first few weeks of May.

In his latest blog post, NADA Used Car Guide’s Jonathan Banks wrote, “With market fundamentals remaining relatively stable and late-model auction supply only 1 percent higher on a year-to-date basis, the biggest driving factor behind price declines in May is normal seasonal depreciation.”

Banks, executive analyst for NADA UCG,  noted that used wholesale values started the spring decline in April, when rates fell by 1.7 percent.

Which segments have taken the hardest hits?

Banks said, for month-over-month declines, the “steepest losses” have been recorded in the compact car and midsize car segments, which have slipped by averages of 2.7 percent and 2.6 percent, respectively.

The compact utility, luxury utility and midsize utility segments all saw prices fall, as well, this spring, with losses essentially equal to  the 1.5 percent total market  decline, Banks reported.

On the other hand, “bucking historical seasonal trends,” large pickup and large SUV wholesale prices have risen compared to what was recorded in April.

This month, large pickup trucks have seen a .1 percent rise in prices compared to the 0.6 percent decline recorded last month.

“Large SUVs are currently performing even better with prices having grown by 1.3 percent after a 0.5 percent decline last month,” Banks added.

In the blog post, Banks also took a look back to May’s used auction prices last year. During the same period last year, large pickups and large SUV prices declined by 1.2 percent and 0.7 percent, respectively.

“Market averages year-to-date shows that for the most part prices aren’t too far off one way or the other from what was observed during the same period in 2012.  There are two segments that continue to stand out by outperforming the rest of the market, as large SUV prices are up by an average of 7.9 percent and large pickup prices trail right behind with a 7.3 percent lift compared to last year’s level,” Banks concluded.
Read more: Autoremarketing | NADA UCG: Used Wholesale Prices Continue Spring Decline

S.A. StevensonUsed Wholesale Prices Continue Spring Decline

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