Used-car prices still high, but leveling off, says NADA

Used-car prices still high, but leveling off, says NADA

After three years of dramatic growth, the average price of used vehicles will rise a modest 1 percent to almost $14,500 this year, says the NADA Used Car Guide in a new report.

This year, used-vehicle price growth hasnt been as robust as the past few years, in part because traditional new-vehicle buyers who purchased used vehicles during the recent economic downturn are returning to the new-vehicle market, said Jonathan Banks, executive automotive analyst of the Used Car Guide.

Although used-car prices are leveling off, they will still finish the year at a historic high. The continuing recovery in new-vehicle sales is helping to improve used-vehicle supply by generating more trade-ins. Added to that is the increase in fleet and off-lease volume, which will help fuel an increase in used supply of units three years old and younger.

The number of used units four years and older will fall in the next six months, says NADA.

Used-vehicle demand will continue to grow, but more slowly than in the past few years. Credit accessibility and a gradually improving job market should help buyers purchasing power.