Approximately 31 Percent of All Car Trade-ins Had Negative Equity this Past Quarter

MCLEAN, Va., May 24, 2016 -- In their latest whitepaper entitled, An Updated Pricing Approach for New Vehicle Financing, analysts at NADA Used Car Guide offer up a solution to mitigate the misalignment of the manufacturer's suggested retail price (MSRP), automotive loan amount financed, and final vehicle price.

Jonathan Banks, the NADA Used Car Guide executive analyst who oversaw production of the report stated, "Used vehicle prices are usually discussed with regard to how either wholesale or retail prices are moving individually, rather than how they're trending in relation to one another. By focusing on just one or the other, it leaves out valuable information that can enhance our overall understanding of the used vehicle market."

With the approach Banks had in mind, the Northern Virginia based division of J.D. Power sought out to analyze the relationship between the two prices and its effect on dealers and remarketers of used vehicles.

Among the many topics covered in the report, analysis highlights the following:

Trends in MSRP and new vehicle prices
Segment-level ratio of new vehicle price to MSRP
Misalignment of finance amount, MSRP and vehicle price
The value of real-world insight

FREE DOWNLOAD: An Updated Pricing Approach for New Vehicle Financing

About NADA Used Car Guide
Since 1933, NADA Used Car Guide^® has earned its reputation as the leading provider of vehicle valuation products, services and information to businesses throughout the U.S. and worldwide. Its editorial team collects and analyzes over 1 million combined automotive and truck wholesale and retail transactions per month. Its guidebooks, auction data, analysis and data solutions offer automotive/truck, finance, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. NADA Used Car Guide^® and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power and Associates.

Media Inquiries
Ryan Morris, Sr. Manager, Public Relations
NADA Used Car Guide^®, a division of J.D. Power and Associates
Phone: 1-202-826-4029
Email: ryan.morris@nada.com

SOURCE NADA Used Car Guide