NADA Used Car Guide and Kelley Blue Book See Seasonal Patterns Return May 15, 2014

NADA: April Wholesale Prices Went Back on Track

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

The April used car market saw conditions returning to normal for this time of year – prices were down 1.1% from March for one-to-eight year old vehicles, essentially equal to the 1% decline in April for the past two years. March had seen a pronounced 3.7% gain, but that follow extreme weather impact in January and February. April finished at 125.8 on the NADA seasonally adjusted used vehicle price index, which tied with March as the highest figure reached.

Here’s the latest Guidelines report

Prices for All Compact Cars and Utilities and Mid-size Cars Were Down in April:
Worth noting that depreciation averaged 1-percentage point less than year ago.

Large Pickups Saw Months-Long Trend End, Falling Nearly 1.3% in April:
3rd largest decline in segment in past two years, behind 1.6% in September 2013 and 2.4% in October 2013.

Prices for Luxury Utilities Fell By 0.6% and Luxury Car Prices Fell by 1%:
While large SUV prices dipped by just 0.4%, the least of any segment.

KBB Also Sees Seasonal Patterns Return in Second Half of April

Alec Gutierrez
Senior Analyst
Kelley Blue Book

Seasonal trends came back after mid-April after ratcheting up in early March. Auction values increased an average of $660 during March and half way through April. Reaching their peak in mid-April had been expected as supply and demand began to normalize; and dealers were able to finish stocking up on used vehicle inventory to meet consumer demand for summer months. KBB expects normal seasonality trends to take over with downward trajectory through end of the year.

Read the latest Blue Book Market Report

At $3.61, Gas Prices Were 14 Cents Higher than April 2013 But 19 Cents Lower than April 2012:
Combination on low fuel prices and higher mpg for non-hybrid vehicles has weakened used car values for hybrid segment.

Mid-Size Cars Saw Strongest Trade-in Activity on KBB’s Online Shopper Activity:
Compact cars and full-size pickups expected to see increased trade-in at dealerships in upcoming months.

CPO Dealers Should Have Plenty of Inventory from Mid-Size and Compact Car Trade-ins:
Entry-level luxury cars are sought-after segment for CPOs by shoppers in Western states.
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Banks_Jonathan_May 2014
NADA’s May 2014 New and Used Market Overview

Whole­sale used vehi­cle activ­ity steadily returned to nor­mal in April, accord­ing to NADA Used Car Guide.

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Edmunds in Your Dealership

Edmunds pric­ing pro­gram and dealer sales events have pro­duced a 20% lift in traf­fic to dealer sites.

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