Market reacts to tight economy, spring prices soften
McLEAN, Va. (April 22, 2008) – The average prices of used vehicles sold at auctions declined in the first quarter of 2008 from the fourth quarter of last year, reflecting a tightening economy and shift in demand by dealers and consumers, according to AuctionNet® data released by NADA Used Car Guide -- the industry standard in used-vehicle valuation and information.
Prices in all used-vehicle segments were down or flat in the first quarter, contrary to the typical pattern of increasing prices at auctions in the January-through-March period, when dealers stock their lots for the spring buying season. Sport utility vehicle (SUV) prices declined 2.6 percent in the first quarter over the fourth quarter 2007, while crossover utility vehicles (CUVs) dropped 2.7 percent, pickups 3.3 percent and vans 0.3 percent. Prices in the passenger car segment edged up slightly by 0.4 percent.
Consistent with past trends, the overall sales volume of used vehicles sold at auctions rose in the first quarter this year – up 15 to 25 percent across all segments. “The lack of a typical spring rebound is significant, especially when you consider how soft prices were in the fourth quarter of 2007,” Terrence W. Wynne, director of editorial and data services for NADA Used Car Guide. “The wholesale market is reacting to challenging economic times.
If you look deeper into the data, you see a shift in demand toward less-costly vehicles, helping deflate these segment averages. Higher-priced vehicles -- those over roughly $15,000 -- are softening while those below it are firming up or increasing.” Wynne added, “This trend is similar to the one witnessed in 2002.”
According to the AuctionNet data, average car and light truck quarterly pricing trends were as follows:
CAR CUV PICKUP SUV VAN
Q4 07 Average Price $9,644 $15,169 $12,345 $12,062 $9,174
Q1 08 Average Price**$9,682 $14,765 $11,936 $11,748 $9,143
Percent Change 0.4% -2.7% -3.3% -2.6% -0.3%
Source: AuctionNet Data
** Adjusted for Mileage and Model Mix
AuctionNet® is an industry-unique wholesale auction database, available exclusively from NADA Used Car Guide, in joint partnership with the National Auto Auction Association (NAAA). Over 80 million records strong and updated weekly, it captures sales from all Manheim, ADESA as well as participating ABC, ServNet and large independent auctions, representing over 80% of nationwide auction activity.
[Editor’s Note: To receive the chart in this release, please e-mail Jeff Beddow at jbeddow@nada.org.]
About NADA Used Car Guide
Over a 75-year history, NADA Used Car Guide has earned its reputation as the leading provider of market-reflective vehicle valuation products, services and information to businesses throughout the U.S. and worldwide. NADA’s editorial team collects and analyzes over one million combined wholesale and retail automotive-related transaction prices per month. Its guidebooks, auction data, analysis, and data solutions offer automotive, financial, insurance, and government professionals the timely information and reliable solutions they need to make better business decisions. For more information, visit www.nada.com/b2b.
Contact:
Jeff Beddow
jbeddow@nada.org