NADA and KBB See Seasonal Patterns and Strength in May Used Vehicle Market June 18, 2014

NADA: Depreciation Back on Track at Expected Levels

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

Strong seasonal demand lifted NADA’s used vehicle price index for May 2014 to a new high of 126.8; that was 0.5% better than the previous record set in April. Older vehicle prices – used vehicles up to eight years old – fell by 2.2% compared to April; that outcome was slightly better than what’s historically occurred in the month of May.

Here’s the latest Guidelines report from NADA Used Car Guide

Depreciation Patterns Similar to What Was Observed for Period in 2011 and 2012:
Small and mid-size car decline exceeded overall market average; losses for other segments were at or below the industry mean.

For First 5 Months of 2014, Wholesale Prices 2.9% Over Same Period Last Year:
Large pickups continue to lead other segments – prices nearly 12% over last year’s level.

NADA’s Forecast for Summer Months Unchanged from May issue of Guidelines:
Depreciation rates expected at 2%-2.5% in June, 1%-1.5% in July, and 2% in August.

May Saw Seasonal Declines, but Still Up Over Past Two Years

Alec Gutierrez
Senior Analyst
Kelley Blue Book

After reaching peak in April 2014, used-car auction values dropped $130 on average through month of May, signaling start of seasonal declines. Seasonal declines were no surprise, but used vehicles maintained values longer over past two months than they had during those months in 2013 and 2012. Average used vehicle value was 4.2% higher than 2013 and 2.7% higher than 2012.

Check out the latest Blue Book Market Report on used vehicle trends

Chevrolet Cobalt and Chevrolet HHR Have Had Notable Ignition Switch Recall:
Both vehicles have been maintaining their values despite negative press over recall.

Full-Size Truck Values Continued Increase in May – Up 7% Over May 2013:
Relatively stable gas prices helping support appreciation of full-size truck segment.

Full-Size Pickups Top Price Performer Over April – Up 1.9%:
Followed by High Performance, Van, Compact Luxury Car, and Mid-Size Pickup segments.
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