Used vehicle sales up; prices set to drop in 2015
The used vehicle market had another bumper year in 2014, with sales up 1.1 percent from 2013, said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide, at the NADA Convention.
Banks said 2014 marks the eighth lowest year in used vehicle depreciation since 1997, with large pickups dropping only 6.6 percent and most other segments falling 12 percent to 16 percent. Luxury vehicles depreciated the most, with compacts down 16.3 percent, midsize down 19.4 percent and large luxury down 21.7 percent.
Banks predicted that used car prices will fall 2 percent to 2.5 percent in 2015 as an increased supply of used cars, many coming off lease, will boost availability. But, he said, that fall will occur from prices that are at historic highs.
As new sales growth slows, automaker pricing discipline will be challenged, Banks said, calling it a major wild card.Download Bulletin PDF