McLEAN, Va. (June 14, 2012) - Moderate seasonal demand will drive down prices in all used-vehicle segments over the coming months, says Jonathan Banks, senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide. 

This short-term sales forecast and other industry data were released today as part of the June 2012 edition of Guidelines, a monthly report containing information and insight on car and truck prices, new and used market trends and the overall economy.  

“NADA's current forecast points to used-vehicle prices dropping by 3 percent in July,” Banks said.

NADA's forecast for July indicates that prices in the compact and midsize used-car segments will drop between 3.5 and 4.5 percent compared with June. Used-vehicle prices are down 1.6 percent in June compared with May, according to the NADA Used Car Guide.

“Falling gasoline prices will result in greater depreciation of compact and midsize cars, but will help moderate losses for light trucks, such as large pickups and SUVs,” Banks added. 

In June, prices of compact and midsize used cars declined the most by 2.5 and 2.8 percent, respectively; the remaining vehicle segments dropped between 0.8 to 1.4 percent in June.

Despite the expected level of moderation during the next two months, NADA's seasonally-adjusted forecast for the remainder of the year is still positive, with current price projections for used vehicles in all segments up 0.7 percent from June through December. 

“It's important to note that used-car prices will remain at historically high levels through the end of the year, despite the expected seasonal softening,” Banks said.