Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide
Depreciation remained very mild over past 2 months – NADA’s price index up just a tenth of a point from June’s figure of 123.4. After falling by a mild 1.1% in June, depreciation tightened up even more last month. Prices for used units up to 8 model years in age fell by just 1.0% in July, a figure substantially better than July 2012’s 2.6% loss and one lower than 2011’s drop of 1.6%.
NADA UCG’s Guidelines Report for August
Year-to-Date, Auction Volume for Units up to 4 Model Years in Age Up by 9%:
While volume for units between 5 and 8 years in age has contracted by 16%.
At Segment Level, Losses Were better than typically recorded over Period:
Prices remained especially strong for large pickups, large SUVs, and midsize utilities.
As for Larger Losses, Depreciation in July was led by Compact Cars at 1.8%:
Figure nearly even with June’s 1.7% decrease and one much improved from the 2.7% rate of decline recorded from April–May.
