Third Quarter Saw Weakest Used Vehicle Price Results Since 2002

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Whole­sale prices of vehi­cles up to eight years old fell 3.6% in Sep­tem­ber from August, well above the 2.8% decline for that peri­od over the past two years. Ele­vat­ed rate of depre­ci­a­tion over past three months caused weak­est third quar­ter for used prices seen since 2002. September’s NADA price index was at 121.4, sim­i­lar to first half of 2013.

NADA Guide­lines edi­tion for Octo­ber 2014

Down­ward Pres­sure from New Vehi­cle Mar­ket Brought Soft­ness to Used Prices:
Increas­ing vol­ume of off-rental units also respon­si­ble for decline dur­ing third quar­ter.

Incen­tives Like­ly Have Also Played a Role in Divert­ing Inter­est in Used Cars:
Incen­tives jumped 18% in Q3 over pri­or year – lev­el not seen since mid-2005 (exclud­ing 2009’s reces­sion-induced spike).

Sub­com­pact, Com­pact and Mid-size Cars Again Saw Most Severe Price Drop:
Prices for these seg­ments fell by 3.6%, 3.9%, and 3.7%, respec­tive­ly.


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