NADA: Used-Vehicle Prices Up Slightly in February
MCLEAN, VA--March 13, 2013: -- Wholesale prices for used cars and light trucks up to 8-years-old rose a modest 0.8% in February, well below the 3% increase for the month over the past two years, says the NADA Used Car Guide in its March edition of Guidelines .
"Price growth for used vehicles through early spring will be weaker than what is typically seen for the period," said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. "Consumers and businesses are beginning to react to the expiration of the 2% payroll tax holiday as well as political activity surrounding the federal budget sequester and debt ceiling extension. These factors will have a negative impact on household income and reduce spending."
Overall, used-vehicle prices have increased by 0.4% over the first two months of the year, significantly less than the 4.4% and 2.4% increases recorded over the same two-month period in 2011 and 2012, respectively.
"The pull-ahead demand for used vehicles stimulated by Hurricane Sandy at the end of 2012 and the delay in filing income tax returns as a result of last year's fiscal cliff resolution is also playing a role in slowing down price growth," Banks added.
In addition, February's tepid performance dropped NADA's seasonally-adjusted used-vehicle prices index to 122.7, which is a decline of 1.4% from January's level and just 0.9% higher than February 2012's reading of 121.6. The index is a seasonally adjusted measurement of the change in price for used vehicles up to 8 years in age.
Looking ahead, NADA expects that used-vehicle prices in March will be flat to up moderately compared to February, and decline in April.
Click here for the March edition of Guidelines.
About the NADA Used Car Guide
Over an 80-year history, the NADA Used Car Guide has earned its reputation as the leading provider of accurate vehicle valuations and auction data. NADA offers a wide range of vehicle values, including those for used passenger car, light-duty and commercial truck, motorcycle, classic car and many more specialty vehicles. Available in a variety of delivery methods, NADA's products and services are used daily throughout the auto, finance, fleet-lease, government and insurance industries. For more information, visit www.nada.com/b2b.
The NADA Story
The NADA story began in 1917 when 30 auto dealers traveled to the nation's capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealers, with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.