In their latest Guidelines report published by NADA Used Car Guide, analysts observed April used vehicle values fell by only 1.4 percent, while new vehicle sales improved 5 percent during the month. With such a nominal change in the used market, NADA’s Used Vehicle Price Index only dipped by two tenths of a point to 124.3 in April.
According to Jonathan Banks, executive analyst at NADA Used Car Guide, “The warmer weather is finally here, and consumers are back on dealer new vehicle lots. With an abundance of incentives, competitive finance, and lease offers, it isn’t surprising to see new vehicles sell so well.”
The manufacturer incentive spending Banks mentions is one of the reasons for brisk new vehicle sales. Average spending per vehicle by automakers was up 3.2 percent ($2,671) versus April of last year.
If the growth in new vehicle sales continues, the seasonally adjusted annual rate (SAAR) will continue to rise past the 16.46 million it hit during April.
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