NADA: Depreciation Back on Track at Expected Levels

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Strong sea­son­al demand lift­ed NADA’s used vehi­cle price index for May 2014 to a new high of 126.8; that was 0.5% bet­ter than the pre­vi­ous record set in April. Old­er vehi­cle prices – used vehi­cles up to eight years old – fell by 2.2% com­pared to April; that out­come was slight­ly bet­ter than what’s his­tor­i­cal­ly occurred in the month of May.

Here’s the lat­est Guide­lines report from NADA Used Car Guide

Depre­ci­a­tion Pat­terns Sim­i­lar to What Was Observed for Peri­od in 2011 and 2012:
Small and mid-size car decline exceed­ed over­all mar­ket aver­age; loss­es for oth­er seg­ments were at or below the indus­try mean.

For First 5 Months of 2014, Whole­sale Prices 2.9% Over Same Peri­od Last Year:
Large pick­ups con­tin­ue to lead oth­er seg­ments – prices near­ly 12% over last year’s lev­el.

NADA’s Fore­cast for Sum­mer Months Unchanged from May issue of Guide­lines:
Depre­ci­a­tion rates expect­ed at 2%-2.5% in June, 1%-1.5% in July, and 2% in August.

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