Severe Weather Threw February Out of Historic Price Pattern

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

The extreme win­ter weath­er in states east of the Mis­sis­sip­pi last month soft­ened used vehi­cle price growth. Whole­sale prices of vehi­cles up to eight years in age grew by 0.8% over Jan­u­ary lev­els last month, slight­ly below NADA’s fore­cast­ed range of 1% to 1.5%. Feb­ru­ary saw a 1.8 per­cent­age point drop in NADA’s used vehi­cle price index, which fell from 125.3 in Jan­u­ary to 123.5 last month. That was about one per­cent­age point low­er than the typ­i­cal 1.7% increase aver­age for that month from 1996 to 2014.

Whole­sale Prices and New Vehi­cle Sales in March 2015 Guide­lines

Sub­com­pact Car Prices Improved 1% Even With Low Gas Prices and Rise in Late-Mod­el Sup­ply:
Mid-size vans rose by a sim­i­lar 0.9% in spite of 20% increase in late-mod­el vol­ume.

Lux­u­ry Prices Went Usu­al Route for Month with Prices Declin­ing Across Board:
Falling by 1%, lux­u­ry com­pact car prices gave up the most ground in Feb­ru­ary.

March Has Been See­ing 4% Price Increas­es through Pent-Up Demand:
April should see 0.5% to 1% drop – less than 2% rate fore­cast­ed in Feb­ru­ary.

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