Used Vehicle Prices Drop for Second Consecutive Month
In the November 2018 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note that after decelerating in September, the used vehicle market slowed for the second consecutive month in October. As a result, the Seasonally Adjusted Used Vehicle Price Index decreased by 1 point, relative to September, to 120.6.
Highlights
Wholesale Prices Decline in October – down by an average of 3.1%
Used Vehicle Price Index Slips – declines 1 point to 120.6
New Vehicle Sales Inch Up – remain relatively flat, new vehicle SAAR reaches 17.46 million
Incentive Spending Decline – for the second time since April 2015
“Wholesale prices of used vehicles up to 8 years in age declined by an average of 3.1% in October, which was right in line with the period’s previous five-year average decline of 3%,” said David Paris, Executive Analyst at J.D. Power Valuation Services. “As expected, there wasn’t any noticeable strengthening in wholesale prices for the October period due to hurricane replacement demand.”
J.D. Power Valuation Services (formerly NADA Used Car Guide) is a provider of vehicle valuation products and services to businesses. It collects and analyzes more than 1 million automotive and truck wholesale and retail transactions per month, and delivers a range of guidebooks, auction data, analysis and data solutions.
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