Depreciation Has Slowed for Vehicles Up to 8 Years Old


Jonathan Banks

Executive Automotive Analyst
NADA Used Car Guide

After falling by 2.1% in May, depreciation for used units up to 8 model years in age slowed to just 1.1% in June, a figure in line with NADA’s 1.3%. June’s modest decline was substantially less than what has historically been recorded for month; NADA’s index jumped to 123.4 from May’s 121.9.

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Compact and Mid-Size Car Segments Led Depreciation by Wide Margin:
Did ease from May – depreciation was at 3.2% in May and 1.9% in June.

Prices for Most Remaining Segments Fell Within Tight Range of 0.6-to-1.2%:
Prices for large SUVs and pickups remained essentially unchanged moving at plus-or-minus .02%.

Growing Late Model Supply Will Continue to Apply Downward Pressure to Prices:
Though its effect will be tempered by fact that volume will remain well below pre-recession levels through at least 2014.