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.
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.