Wholesale prices fall at fastest rate since October 2013

Wholesale prices fall at fastest rate since October 2013

Wholesale prices saw an unusually steep decline in July for a summer month, as prices of vehicles up to eight years old fell 3.5 percent, say NADA Used Car Guide analysts. The average monthly drop from 2011 to 2013 was just 1 percent. Julyês decline was the steepest since last October.

From December to February, prices jumped by 4 percent, the highest rate in three years. The July drop can be seen as a belated adjustment to that sharp increase, which NADA says was caused by temporary factors.

Successful new-vehicle sales in the spring and summer could have contributed to Julyês wholesale price drop. The increase in new sales has brought more trade-ins.

Nonluxury cars depreciated more than trucks and SUVs in July. The mainstream segments that saw the most depreciation were midsize and compact cars and subcompact cars.

Even with the wholesale decline, year-to-date prices are still 2.3 percent higher than a year ago. Leading segments are large pickups (up 11.2 percent from a year ago) and large SUVs (up 6.2 percent).

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