NADA’s Luxury Brand Trends and Used Price Forecast

Jonathan Banks
Senior Direc­tor of Edi­to­r­i­al and Data Ser­vices
Nation­al Auto­mo­bile Deal­ers Asso­ci­a­tion

Lux­u­ry Brand Trends and Used Price Fore­cast

Height­ened com­pe­ti­tion in new vehi­cle mar­ket trans­fer­ring over to used mar­ket; Each redesign and new mod­el intro­duc­tion nar­rows degree of sep­a­ra­tion between mod­els w/in com­pet­i­tive set; Lux­u­ry lease sub­ven­tion ris­ing, but too ear­ly to tell if future used reten­tion is undu­ly threat­ened because of it.

Falling Used Sup­ply Will Help Raise Used Lux­u­ry Prices Again this Year:
Should be up by 1.9%, low­er than over­all mar­ket, but still at his­toric high lev­els.
For 1st Time in Years, Down­side Price Risk on Hori­zon:
Due to off-lease growth in 2013 and total used sup­ply growth in 2014.
Con­sumer Demand Becom­ing Dis­persed Across Brands:
OEM reac­tion to pro­mote growth or pro­tect share will play crit­i­cal role in deter­min­ing degree of used price change.

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