July Prices Out of Character with Usual Subtle Summer Declines

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Prices of used vehi­cles up to eight years in age fell by 3.5% on a month­ly basis in July, which was well above both 1% drop aver­aged from 2011 to 2013 and NADA’s fore­cast of -1 to -1.5%. That was out of char­ac­ter with usu­al sub­tle declines expe­ri­enced in heart of sum­mer. NADA’s sea­son­al­ly-adjust­ed used vehi­cle price index was down almost three points to 123.3. July looked more like steep­er declines wit­nessed last fall.

NADA Used Car Guide’s August issue of Guide­lines

New Mar­ket Pres­sure Was Arguably a Con­tribut­ing Fac­tor to Price Declines:
More con­sumers have come to deal­er show­rooms and increased num­ber of vehi­cles being trad­ed in.

Non-lux­u­ry Car Seg­ments Saw Greater Loss­es than Trucks and SUVs:
Mid-size and com­pact cars were both down 3.6%, and sub­com­pact cars fell by 3.4%.

Lux­u­ry Seg­ments Were Hit Hard­er than their Main­stream Coun­ter­parts in July:
Lux­u­ry mid-size cars took biggest tum­ble at 3.9% — biggest decline record­ed since Novem­ber 2009.



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