December Saw Strongest Price Results in Several Years

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Whole­sale used vehi­cle prices saw strong results for the month of Decem­ber – one of the strongest on record. Drop­ping gaso­line prices and deal­ers anx­ious to secure inven­to­ry for the fast-approach­ing tax refund sea­son drove demand and strength­ened prices on vehi­cles up to eight-years old. Those prices were up 0.3% over Novem­ber and 1.4% over Decem­ber 2013. That turned around a Decem­ber trend with prices falling 1.4% from 2003 to 2013 and not see­ing a used vehi­cle price increase in more than 20 years.

Here’s NADA Used Car Guide Indus­try Update

Large SUVs and Big Lux­u­ry Cars Fell Worst with Both Down 1.2%:
Lux­u­ry Com­pact Util­i­ties Best Per­form­ing Seg­ment Going Up by 1.3%.

Large Pick­up Depre­ci­a­tion Lean­est of All Seg­ments for 3rd Year in Row:
Used large pick­up prices up eight times over­all mar­ket increase of 3.5%.

Expect to See Sim­i­lar Sea­son­al Pat­terns Play Out Dur­ing 2015:
In addi­tion, prices will be most influ­enced by low gas prices, ris­ing sup­ply, and increased new mar­ket pres­sure.

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