The September U.S. used vehicle market saw depreciation climb and prices drop -3.6%, making the month’s performance the largest decline recorded in 2016 so far. As a result, NADA Used Car Guide’s seasonally adjusted used vehicle price index fell by -1% to 117.5, the lowest level since March 2011.
“Price movement down was led by mainstream small cars. Subcompact and compact car segment losses reached -4% each,” said Jonathan Banks, at NADA Used Car Guide. Luxury mid-size and compact utility losses were the largest of all luxury segments for the month – just under -4%.
In NADA Used Car Guide’s recently published monthly Guidelines report, analysts forecast prices of vehicles up to eight years in age will fall by around -3.5% during October compared to September. During October 2015 prices fell by an average of just under -3%. Analysts expect depreciation to slow toward the end of the year.
In November 2016, used vehicle prices are expected to fall by under -2%, followed by an even smaller sub-1% decline in December. The full-year forecast expects used vehicle prices to be down by an average of around -4% on an index-basis from 2015.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
