NADA Says Three Forces Shaping Prices, RVI Looks at April Real and Nominal Pricing May 28, 2015

NADA Releases Report on Impact of Auto Loans on Used Vehicle Prices

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

Lender investments are expected to come increasingly under pressure as credit transitions from an exceptional period of low risk to one of decidedly higher risk. Credit conditions will continue to be favorable for some time, but not at quite the same unprecedented level. Credit conditions are expected to weaken for auto loans. This will put downward pressure on used vehicles prices, as will expanding pool of used vehicles.

See the new report - Vehicle Equity: Managing the Risk Ahead

Federal Reserve Decision to Raise Short-Term Interest Rates Expected in Q3 2015:
Will push auto loan rates higher for first time in a decade, although rates will likely rise slowly.

Used Vehicle Price Compression Also Driven by Off-Lease Volume Increase:
Made it to 3.2 million units in 2014 and second only to 1999’s total of 3.3 million.

NADA Expects that New Vehicle Pricing Pressure Will Also Soften Used Prices:
Depreciation of vehicles up to 8 years old expected to jump from 14% this year to near 18%.
Abdalah_Rene_RVI Group

RVI Used Vehicle Price Index Up from March but Dropped from Last Year

Rene Abdalah
Vice President, Passenger Vehicle
RVI Group

RVI Used Vehicle Price Index (Real) increased by 0.6% in April compared to March, but when compared to April of 2014, index fell by 2.7%. RIV’s Used Vehicle Price Index (Nominal) rose 0.9% in April when compared to March. Prices fell 0.1% from April 2014.
Index measures wholesale values or (residual values) of used cars (2-5 year-old vehicles) adjusted for mileage, mix, and seasonality.

Read the latest edition of RVI Market Update

Larger Vehicles Had Greatest Gains - Full-Size SUVs increased by 2.0% from March:
Compact cars had weakest price performance in April, falling 0.7% from March.

Seasonally Adjusted New Vehicle Transaction Prices Rose 0.2% from February to March:
There was a 0.8% increase in new vehicle transaction prices in April from March.

Gasoline Prices Rose One Cent in April, Up to $2.56 Per Gallon:
Gas prices saw a jump in May – as of May 4th, prices had risen to $2.75 per gallon.
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