March Makes Up for Lost Ground Caused by Harsh Winter Weather

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Prices of used vehi­cles up to eight years in age increased by 2.3% month-over-month in March, which was 1.5 per­cent­age points more than February’s tepid 0.8% rise. It was also the high­est increase record­ed since March 2014 when prices bal­looned by over 4%. The mar­ket made up for lost ground in March, as thaw­ing tem­per­a­tures allowed deal­ers and con­sumers to become much more active after harsh win­ter weath­er restrict­ed mar­ket activ­i­ty over the first two months of the year. Over­all, post-reces­sion increase is like­ly due in part to bet­ter and more pre­cise deal­er inven­to­ry man­age­ment prac­tices.

NADA’s Guide­lines for April 2015

Main­stream Seg­ments Saw price growth for Major­i­ty checked in between 2.3% to 2.7%:
Large pick­ups and sub­com­pact cars fell short, with increas­es of 1.9% and 1.6%, respec­tive­ly.

Auc­tion Vol­ume for Mod­els up to 8 Years Old was About 341,000 Units in March:
Up 3% from February’s lev­el and more than 5% high­er than March 2014.

March’s Strength and Sea­son­al Demand Should Help Lim­it April Dep­re­ca­tion at 1%:
Would be improve­ment over the 1.5% decline aver­aged over past 10 years (except for 2011 fol­low­ing Japan­ese tsuna­mi).



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