Used vehicles prices fall along with new vehicle sales

by Talk Business & Politics staff ( 84 views 

Wholesale prices of used vehicles up to 8 years old declined 7.6% in June, from the same month in 2016, according to J.D. Power Valuation Services, formerly NADA Used Car Guide.

The prices fell 2.2% in June, from May, and the decline was expected. The J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index was flat at 111.1 in June, from May.

Auction volumes for vehicles up to 8 years old rose 6.4% to 373,188 units in June, from 350,603 units the same month in 2016.

In July, wholesale prices of the used vehicles are expected to fall 2%, which is slightly better than the 2.2% drop in July 2016, according to J.D. Power Valuation Services. For 2017, used vehicle prices are expected to decrease about 6%, two percentage points worse than the 4% decline in 2016. “Ongoing increase in supply, higher incentives and a normalizing retail environment — including credit conditions — will ultimately dictate losses.”

New vehicle sales declined 3.2% in June, from the same month in 2016. Between January and June, vehicle sales have fallen 2.2% to 8.4 million units, from the same period in 2016. The seasonally adjusted annual rate of sales was 16.41 million units in June, down from 16.58 million units in May. Passenger car sales fell 12.1%, while pickup sales rose 3.9%.

Incentive spending rose for the 27th consecutive month to $3,616 per vehicle compared to $3,239 in June 2016, according to Autodata. Vehicle inventory fell six days in June to 74 days. In June 2016, the inventory was 66 days, according to Wards Auto.