NADA Sees August Price Drop Coming from Market Correction and New Vehicle Sales Pressure

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

NADA Used Car Guide sees price drops more in line with two fac­tors — mar­ket cor­rec­tion from inor­di­nate run-up in spring prices com­bined with pres­sure from new vehi­cle mar­ket — than do oth­er ana­lysts who see off-lease and off-rental vol­ume being prin­ci­pal cause of down­turn. For sec­ond month in a row, prices were down more severe­ly in August than what’s been record­ed for the month; whole­sale prices of vehi­cles up to eight years old were down 3.1% from July. That was worst show­ing for August since 2002.

NADA Used Car Guide Indus­try Update for Sep­tem­ber 2014

New Vehi­cle Sales Rose by 5% and SAAR Jumped to 17.5M Units:
Incen­tive spend­ing climbed for 5th straight month to near­ly $2,975 per unit.

Sub­com­pact and Com­pact Cars Again Did Poor­ly — Falling by 3.6% and 3.3%:
Mid-size cars also down from pre­vi­ous month at 3.4% — which tied August 2011 as segment’s worst show­ing in past 5 years.

Large Lux­u­ry Cars Dropped 3.7%, Biggest Decline Among All Seg­ments:
Prices of com­pact and mid-size lux­u­ry cars fell with­in a range of 2.6% to 3%.

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