Late-Model Vehicle Oversupply Behind First February Price Drop in 20 Years

Jonathan Banks
Exec­u­tive Auto­mo­tive Ana­lyst
NADA Used Car Guide

While NADA Used Car Guide’s lat­est price index was up more than 4% over Feb­ru­ary 2015, prices were at a his­tor­i­cal­ly weak lev­el. Whole­sale prices were down 1% from Jan­u­ary, and it was the first time in 20 years that prices didn’t increase. Late-mod­el vehi­cles had much to do with the over­sup­ply and soft prices. Auc­tion vol­ume of 2014 and 2015 mod­el year vehi­cles increased by about 20% from Jan­u­ary to Feb­ru­ary – four times greater than in past two years.

Check out the lat­est edi­tion of Guide­lines

Lux­u­ry Seg­ments Were Hit Hard­est in Down­ward Prices in Feb­ru­ary:
Lux­u­ry com­pact car, large util­i­ty, and mid-size util­i­ty prices fell by an aver­age of 2%.

Large Pick­up and Util­i­ty Loss­es Out­paced Oth­er Seg­ments by Aver­age of 1%:
Reversed long-held strong posi­tion, while com­pact cars con­tin­ued weak per­for­mance.

Prices for Vehi­cles Up to 8 Years Old Ris­ing 2% to 2.5% in March over Feb­ru­ary:
Whole­sale price growth is expect­ed to be more pro­nounced for cars than trucks.

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