“The end of summer is typically a good time of the year to shop for new and used vehicles,” said Jonathan Banks, senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide.
“Dealers and manufacturers are offering incentives and rebates to sell remaining inventory at dealerships and to make room for new model year vehicles arriving this fall,” Banks added.
For consumers shopping in the used-vehicle market, average retail-prices for used cars and light trucks up to five-years-old experienced the greatest monthly decline this year, dropping 3.8% in August, says the NADA Used Car Guide.
“Over the next few months, we expect to see an acceleration in the decline of used-vehicle prices that usually begins as the summer season winds down,” said Banks, in the August edition of Guidelines, a monthly report that analyzes trends and pricing information on both the new- and used-vehicle markets.
“New-vehicle incentives and discounts are another seasonal factor that typically results in used-vehicle price declines in late August and September,” he added.
The NADA Used Car Guide is predicting used-vehicle prices on average will drop between 3% and 3.5% in September. In monetary terms, a used car worth $12,000 today will drop by more than $400 by the end of the third quarter.
Despite the declines of used-vehicle prices throughout the remainder of the year, prices are still at historically high levels, Banks added.
“While steady price declines are making many late-model used vehicles more affordable to purchase, it’s important to note that higher-than-average trade-in values are still providing consumers with built-in equity to get better deals on either a new or used car or truck,” he said.
About the NADA Used Car Guide
Over a 79-year history, the NADA Used Car Guide has earned its reputation as the leading provider of accurate vehicle valuations and auction data. NADA offers a wide range of vehicle values, including those for used passenger car, light-duty and commercial truck, motorcycle, classic car and many more specialty vehicles. Available in a variety of delivery methods, NADA’s products and services are used daily throughout the auto, finance, fleet-lease, government and insurance industries. For more information, visit www.nada.com/b2b.
The NADA Story
The NADA story began in 1917 when 30 auto dealers traveled to the nation’s capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealers, with 32,500 franchises, both domestic and international. For more information, visit www.nada.org.
SOURCE National Automobile Dealers Association