MCLEAN, Va. — The May edition of the NADA Used Car Guide’s Guidelines reported that wholesale used-vehicle prices fell by an average of 1.7% in April due to poor performance across car segments. As a result, the NADA Used Car Guide’s seasonally adjusted used vehicle price index has fallen for the fifth straight month.
The end-of-April seasonally adjusted used-vehicle price index landed at 118, a 0.6% drop from March. NADA Used Car Guide analysts noted that the softness during the first third of the year has placed the index 4% below 2015’s four-month average and has resulted in the index dropping to its lowest level in more than five years.
“If it weren’t for pickup trucks prices only dropping 0.5% and large utility vehicle prices not really changing at all, the index dip could have been much worse," he NADA Used Car Guide stated in its monthly report.
Unlike pickup trucks, which only experienced a minor dip, the subcompact segment’s depreciation was steep. Prices for subcompacts fell by 4.3%, nearly twice as much as the 2.3% loss averaged by compact and mid-size cars, according to the guide.
The luxury large car segment saw a 2.1% drop in vehicle price. According the NADA Used Car Guide, April's performance pushed year-to-date losses for the segment to nearly 6% vs. the fourth quarter of 2015; the highest in the industry.
Prices in June and July are expected to fall by an average of 2.5% to 3%, the report noted. NADA Used Car Guide analysts forecast prices to be down 5% to 6% on an index-basis from 2015, placing prices below 2011 levels. This would mark one of the steepest non-recession declines experienced over the past 20 years, according to the report.