Wholesale and retail used car prices fall the most in years
Wholesale used vehicle prices for units up to eight years old fell 3.5 percent in October, the most in two years, according to NADA. The federal shutdown exacerbated normal seasonal softness in prices, says NADA. And retail used prices hit their lowest levels in four years, says Edmunds.com.
Breaking down wholesale prices, midsize vans saw the biggest monthly decline as prices fell 4.7 percent. The drop was in large part caused by rental fleets selling large quantities of similarly equipped units at auction in a short period. Luxury and compact cars also saw price drops slightly higher than market average.
Year to date, used vehicles up to eight years old had a seasonally adjusted average wholesale price of $15,066, up slightly from 2012. NADA expects used wholesale prices will fall by an average of 1.9 percent in the next two months.
On the retail end, Edmunds.com says the used market is finally softening after years of high prices. It says the average used car retailed by franchised dealers in the third quarter was $15,617.
Now that the new-car market has hit its stride, buyers are no longer drawn to used cars the way they have been in recent years, says Edmunds.coms director of used car analysis, Joe Spina.Download Bulletin PDF