Used-Car Prices Hit the Skids in June
NADA USED CAR GUIDE: TOYOTA PRIUS TO DROP $900 IN VALUE FROM MAY TO JUNE
McLEAN, Va. (May 29, 2012) - After double-digit percentage gains from January through May 2012, prices on many popular used compact and midsize cars are expected to drop up to 5 percent in June compared to May, said Jonathan Banks, senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide.
“The trend of rising prices for used cars will reverse course in June because of declining gasoline prices combined with a normal seasonal slowdown in consumer demand for used cars,” Banks said.
Used-car values will decline by about 2 percent, while truck values will fall by about 1 percent or half of the amount of cars, according to the June edition of the NADA Official Used Car Guide. Prices for used compact and midsize cars will fall by an average of 2.4 percent and many used cars will see larger declines. (See chart.)
Used-Car Prices Show Dramatic Declines in June Compared to May
|June vs. May
|June vs. May
|2009||Toyota Camry||$11,510||$13,235||15%||$12,560||- $675||- 5%|
|2009||Honda Civic||$10,987||$12,187||11%||$11,587||- $600||- 5%|
|2011||Toyota Prius||$18,875||$21,225||12%||$20,325||- $900||- 4%|
|2010||Hyundai Elantra||$10,742||$12,167||13%||$11,667||- $500||- 4%|
|2011||Nissan Versa||$10,527||$11,702||11%||$11,252||- $450||- 4%|
|2009||Dodge Caliber||$8,132||$9,157||13%||$8,807||- $350||- 4%|
|2011||Ford Fusion||$14,237||$15,662||10%||$15,112||- $550||- 4%|
|2009||Chevrolet Cobalt||$7,465||$8,565||15%||$8,265||- $300||- 4%|
Source: NADA Used Car Guide
For example, after appreciating by $1,200 or 11 percent from January through May, the value of a 2009 Honda Civic Sedan 4D LX will fall by $600 in June.
“Prices on the Toyota Prius will drop even more dramatically in June,” Banks said. “Rapid depreciation for hybrid vehicles is not uncommon after surging gasoline prices reach a peak and then begin to quickly fall.”
After increasing in value by $2,350 from January through May, prices on the 2011 Toyota Prius Liftback 5D will fall $900 in June, according to the NADA Used Car Guide.
“During periods of rapidly changing gasoline prices, values of hybrid vehicles become more volatile because consumer demand for hybrids rises and falls along with the price of gasoline,” Banks added.
For example, when gasoline prices increased during the first four months of 2011, the 2009 Toyota Prius increased in value by about $4,500 from January through April 2011. In the fall of 2011, the Prius dropped in value by $4,800.
Looking ahead to July, the NADA Used Car Guide is forecasting that depreciation for small and midsize cars, which experienced the greatest appreciation over the first part of 2012, will see values continue to drop sharply.