Used Prices Holding Up Pretty Well Even with Rising Supply

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

Used vehi­cle price declines are con­tin­u­ing, but at a more mod­er­ate pace. In June, prices of used vehi­cles up to eight years in age fell by 2.5% from May, or more than a half-per­cent­age point less than the 3.2% drop record­ed a month ear­li­er. Look­ing at the num­bers from a broad­er per­spec­tive, the first half of 2015 saw prices just 0.6% down form the first half of 2014 and its all-time high. Used prices are hold­ing up fair­ly well even with pres­sure from the new vehi­cle mar­ket and ris­ing sup­ply.

Here’s a por­tion of NADA UCG’s Guide­lines July edi­tion

Sub­com­pact, Com­pact and Mid-size Car Prices among Soft­est all Year:
Due to new mar­ket com­pe­ti­tion in seg­ments, demand for crossovers and low­er gaso­line prices.

At 2.1% Depre­ci­a­tion, Com­pact Util­i­ty Prices Bounced Back from May’s 3.3% Fall:
Mid-size and large util­i­ty prices down 6% for year, essen­tial­ly unchanged from 2014.

Large Pick­ups Dipped 0.5% in June to bring YTD depre­ci­a­tion to just 4%:
Prices haven’t fall­en by more than 2.5% on a month­ly basis in more than five years.

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