December Prices Drop After a Very Strong Year

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

NADA Used Car Guide’s sea­son­al­ly adjust­ed used vehi­cle price index fell by 1.6% from Novem­ber to 122.4, and dropped near­ly 2% below last December’s lev­el. That was a much steep­er fall for Decem­ber than the 0.5% decline aver­aged for that same month over the pre­vi­ous five years. It also marked the sec­ond weak­est month since 2003. Near­ly every seg­ment had steep­er loss­es than those of the past few years. Over­all, 2015 was one of the strongest years on record – down just 0.3% from the all-time high aver­aged in 2014.

Here’s the Jan­u­ary edi­tion of Guide­lines

Lux­u­ry Mid-size Cars and Com­pact Cars Had Largest Declines with Both at 2.2%:
Mid-size util­i­ty and lux­u­ry large cars did best at slight­ly less than 1% in price declines.

Auc­tion Vol­ume of Vehi­cles Up to 8 Years Old Fell by 2% Over 4 Weeks End­ing Decem­ber 21 from Pri­or 4 Weeks:
Com­pared to same peri­od of pre­vi­ous year, auc­tion vol­ume was 6% high­er.

Price Fore­cast: Vehi­cles Up to 8 Years Old Up 0.5% for Jan­u­ary over Decem­ber:
Prices should be up about 1% per month in Feb­ru­ary and March.

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