September Used Vehicle Market: Depreciation Climbs, Prices Drop
MCLEAN, Va., Oct. 17, 2016 -- Wholesale prices of vehicles up to eight years in age fell by 3.6 percent in September, making the month's performance the largest decline recorded in 2016 so far. As a result, NADA Used Car Guide's seasonally adjusted used vehicle price index fell by 1 percent to 117.5, the lowest level since March 2011.
WATCH: October 2016 Used Vehicle Market Update Video
Mainstream and Luxury Segment Performance
"Price movement [at the segment level] was led by mainstream small cars. Subcompact and compact car segment losses reached 4 percent each," said Jonathan Banks, vice president of vehicle analysis and analytics at NADA Used Car Guide.
As for luxury segments, losses for the month were a mixed bag.
"Luxury mid-size and compact utility losses were the largest of all luxury segments for the month," stated Larry Dixon, director of market intelligence at NADA Used Car Guide.
Dixon went on to say, "Prices declined by just under 4 percent for the pair."
Market Forecast
In NADA Used Car Guide's recently published monthly Guidelines report, analysts forecast prices of vehicles up to eight years in age will fall by around 3.5 percent during October compared to September. For context, October 2015 prices fell by an average of just under 3 percent.
Looking ahead, analysts expect depreciation to slow toward the end of the year. In November, prices are expected to fall by under 2 percent, followed by an even smaller sub-1 percent decline in December.
NADA Used Car Guide's full-year forecast expects prices to be down by an average of around 4 percent on an index-basis from 2015.
Download the free October 2016 Guidelines report covering the used vehicle market.
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.
Media Inquiries
Ryan Morris
Sr. Manager, Public Relations
NADA Used Car Guide®, a division of J.D. Power
1-703-821-7165 | ryan.morris@nada.com
Video - https://youtu.be/M0VdHI5QJlc
SOURCE NADA Used Car Guide
