Executive Automotive Analyst
NADA Used Car Guide
NADA Used Car Guide has analyzed how used vehicle wholesale prices at auction and retail price premiums have varied in recent years. Since 2008, wholesale prices began to rise due to low supply, easier credit, and an improved attitude among consumers and dealers about the used car market. In the past two years, the average wholesale price increased to an all-time high of nearly $16,000. Prices in the used retail market also increased – up 18% from 2007 to 2015.
Spread between the Two Greatest in 2008 at 41.3% Right Before Crash:
At 33.4% in 2012, lowest in past decade, and only increased to 35.3% in 2015.
Spread between Used Compact Cars Declined by 11% from 2006 to 2015:
In contrast, luxury segments showed narrower spread during this period.
Older Used Vehicles May Not Be as Inexpensive as Expected:
May have higher retail premiums as dealers will need to spend more on reconditioning.