US Used Car Market Update
Are you in the business of selling and trading cars? Would you like to have a better idea of your used vehicle’s resale value?
We have here summaries from two reports. While you should not depend on these data only, you can make better decisions by combining them with your very own analysis and findings during inspection:
The following information is obtained from NADA’s Used Car Guide Industry Update for November 2014. NADA stands for National Automobile Dealers Association. It is the ultimate go-to for most car dealers in the country:
- The cost of oil has reportedly gone down as of October 2014 as supply increases now that the United States is also producing and selling oil. This is significant news as this may encouraged more people to buy cars, including used ones, in the future. They expect the trend to continue in the long term.
- October is a soft month for wholesale vehicles with the demand going down and the increasing supply of late-model vehicles in the market. The price has gone down to more than 3.5% with depreciation values pegged at 3%. [It is possible that the low demand may be brought by the fact that holidays are around the corner, and with enough cash, people are more capable of buying new units.]
- Late-model units sold at auctions increased.
- New vehicles or those that were in 2014 model year increased to more than 35% before the week ended in October 2014.
- Price changes varied depending on the types of vehicles (with up to 8 years in terms of age). The biggest price change could be seen in mid-size vans for 5.1%. The least was luxury large car at 0.5%. Compact cars had a price change of around 4.3%.
- The volume of late-model compact and sub-compact vehicles sold at auctions grew to more than 12%.
- Prices for luxury cars generally fell for both compact and mid-sized cars at 2.3% and 2.4% respectively.
- Trade-in values have decreased by around 3.5%.
The following data, meanwhile, come from Edmund’s third quarter 2014 vehicle market report:
- Based on the summary found on page 1, total used sales as of Q3 2014 have slightly dropped to 9.164 million as opposed to 9.202 million the previous year. However, the sales are higher than the previous quarter of 2014.
- The average retail price for used franchise vehicles has gone up to $16,678 or 0.1% than the previous year.
- Of all the used vehicle categories, those that have been deemed certifiable increased. The report then cited some of the reasons why, including longer warranty for bumper to bumper as much as 7 years for every 100,000 miles in mileage, almost no (or very low) deductible, and comprehensive inspection.
- Premium for CPO was at $1,341. The most expensive was expectedly premium luxury car at $2,886. The cheapest was subcompact cars at $826.
- One-year-old models commanded a higher price in 2014 than in 2013, from $28,274 to $30,275. Nevertheless, other late-model vehicle prices except for 6-year-olds also slightly increased.