Should Used Car Dealers Fill Inventories Now, or Wait?

Auction prices of used vehicles highest since March of 2014

MCLEAN, VA -- April 15, 2015: In their April Guidelines report, NADA Used Car Guide analysts observed wholesale prices of used vehicles at auction climbing by 2.3 percent during the month of March. The increase in prices helped push NADA's Used Vehicle Price Index up from 123.4 in February to 124.3 in March. The automotive industry's leading source of used vehicle valuations believe the industry is positioned to beat overall economic growth for the sixth year in a row.

"There appears to be no letup in the demand for cars from the data we're seeing," said Jonathan Banks, executive analyst at NADA Used Car Guide. "While extreme winter weather created a pent-up demand situation in several markets helping the pricing figures rise, it appears the American buyer is ready to acquire a new set of wheels."

Tax Refunds Play a Role

With tax refund checks filling the bank accounts of millions of Americans, analysts at NADA Used Car Guide believe April will continue the upward sales and pricing trends they've observed.

The monthly Guidelines report also found that manufacturers are barely spending more than last year to move new vehicles off of dealer lots and into consumer driveways. Average spending per new vehicle year-over-year was up a slight 0.4%, or $2,726.

Download the Report

The full report explaining trends and forecasts can be downloaded for free on the NADA Used Car Guide website at nada.com/b2b.