NADA: Used Prices for Full-Size Pickups Up 7.7% through June; Little Change Expected for July
MCLEAN, VA--July 16, 2013: Used cars and light trucks continued to be in high demand through the first six months of the year resulting in prices that outperformed typical seasonal declines, especially full-size pickup trucks and sport utility vehicles, says the NADA Used Car Guide in its July edition of Guidelines.
"June closed out the first half of the year with average auction prices of used vehicles up to 8 years in age nearly equal to last year's level," said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. "Given the stability observed in used-vehicle prices year-to-date, we expect to close out the year with prices essentially unchanged from the historically high average of $15,664 in 2012."
Used vehicles up to 8 model years in age depreciated by a modest 1.1% in June, a figure in line with NADA's 1.3% forecast last month. Prices fell 2.1% in May. June's decline was substantially less than what has historically been recorded for the month, which resulted in NADA's seasonally adjusted Used-Vehicle Price Index to jump to 123.4 from 121.9 in May.
The average wholesale price of used vehicles up to 8-years-old was $15,892 through the first half of 2013, a figure nearly identical to $15,910 last year and nearly $600 higher than $15,294 in 2011 compared to the same six-month time period.
"Overall used-vehicle prices at a market level have changed little through the first six months of 2013, but there were more distinct shifts at the segment level," Banks added.
For example, luxury car and utility vehicle prices were 1.8% lower from January to June 2013, compared to mid-year figures in 2012. Prices of compact utilities and midsize cars dropped by 1.5% and 1.2%, respectively, and prices for compact cars slipped by 0.7%. A substantial 7.7% rise in used prices of full-size pickup trucks and SUVs, and price increases of 1.4% for mid-size utilities and 2.3% for vans helped to offset these losses.
Values in July's edition of the NADA Official Used Car Guide were adjusted downward by 1.9%, which is a sizable improvement over last July's decline of 3%. Depreciation over the remainder of 2013 is predicted to closely resemble what occurred last year.
"Seasonal effects aside, consumers should expect trade-in prices to remain high through at least the end of the year, especially for full-size pickups and SUVs because of lower supply and increased demand from a recovery in construction," Banks said.