Prices Stayed Strong Despite Incentives and Rising Supply

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

NADA Used Car Guide’s used vehi­cle price index came in at 123.1 in August, up 0.3% from both July and August of last year. The index has only dropped 0.5% this year. Used vehi­cle prices have stayed strong despite new vehi­cle incen­tives and ongo­ing rise in sup­ply. The index fell 1.9% from July 2015, which was stronger than NADA’s fore­cast of 2.2% to 2.7% decline — and a real improve­ment over last year’s decline of near­ly 3%.

Here’s the used vehi­cle report from NADA’s lat­est Guide­lines

Lux­u­ry Large Cars Down 16.2% in Prices Year-to-Date as Loss Leader:
Sub­com­pact cars down 14.6% YTD, com­pared to 10.4% down for over­all indus­try.

Auc­tion Vol­umes Were at 291K Units in August and Down 8% from July:
Vol­umes of mod­els up to 8 years old down 6% from last year’s 310K units.

NADA UCG Fore­casts Sep­tem­ber Prices Falling 2.5% to 3% from August:
This year’s antic­i­pat­ed depre­ci­a­tion rate on par with 2.7% decline in past two years.



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