As Used Vehicle Depreciation Slows in November, Price Index Rises

MCLEAN, VA -- December 14, 2015: According to NADA Used Car Guide analysis, the month of November saw used vehicle prices firm up from October levels. Findings in their latest Guidelines report note wholesale prices of vehicles up to eight years in age depreciated slowly during the month, falling by 1.9 percent versus October's 2.7 percent decline. Conversely, the automotive industry's leading provider of vehicle valuation products saw the used vehicle price index climb 1 percent during the same period, to 123.8.

Jonathan Banks, executive analyst for NADA Used Car Guide said, "It's normal for used vehicle depreciation to slow during the end of the year. That said, while the slow is normal for the month, it was steeper than last November's 1% slide."

Larry Dixon, senior analyst for NADA Used Car Guide added, "The decline was in line with losses we saw from 2011 to 2013. It was much better than the historical average for November."

In addition to insights provided about the used vehicle market, the December Guidelines report provides analysis of the new vehicle market. New vehicle sales rose for the third consecutive month as the seasonally adjusted annual rate (SAAR) climbed 1.7 percent, reaching 18.12-million units. Compared to Nov. 2014, manufacturer incentive spending grew again, with average spending per unit reaching $3,082 (6.6 percent).

The report also includes a special vehicle price analysis of how Volkswagen-branded models have sold since the Environmental Protection Agency's September notice of violation regarding emission standards. In the VW-focused section, analysts report pricing of affected VW Passat and Jetta diesel models ran 9- to 12-percentage points worse within their vehicle segments.