Prices of Used Vehicles for 2013 Peak in March
McLEAN, Va. -- Wholesale prices of used cars and light trucks reached their annual peak in March, according to the National Automobile Dealers Association Used Guide. Prices for used vehicles up to eight years old rose 1.2% in March, substantially less than the 3% increase recorded for the month last year.
“Wholesale prices for used vehicles increased in February and March, but the price growth has been mild compared to what is typically seen for the period,” said Jonathan Banks, executive automotive analyst for the Guide.
The slower rate of growth during the first quarter was caused by a combination of factors, among them higher payroll taxes, delayed tax refunds and the spike in demand from Hurricane Sandy at the end of 2012.
Despite March’s weaker-than-normal performance, the first quarter ended with used-vehicle prices 0.9% higher compared to the same three months a year ago. Prices of compact car rose 2.2%, which was the highest of any segment for the month. Prices for mid-size cars and vans increased by 1.3%.
“Gasoline prices, which grew by nearly 50 cents from December to late February, likely led to increased used-vehicle prices in the compact car segment compared to other segments,” Banks noted. “For large pickup trucks, the improved housing market has resulted in used prices growing by 1% despite the increasing supply of late-model used pickups.”
For this month, NADA predicts that used-vehicle prices will fall by 2% to 2.5% with depreciation accelerating toward the end of the month and continuing through May.
Published by The Business Journal, Youngstown, Ohio.
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