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.
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.