McLEAN, Va. -

A variety of social and economic factors seem to be affecting the wholesale market, says NADA Used Car Guide, including dropping consumer confidence and Social Security tax increases. 

NADA UCG reported these factors are contributing to the current “plateau” in the lanes.

Over the course of the current week, NADA expects used prices across all segments to remain flat as AuctionNet wholesale prices are expected to remain essentially unchanged compared to their two-week averages.

The overall industry average is also expected to remain unchanged versus last week.

“After an early uptick in average wholesale prices in November and December (due in large part to the effects of Hurricane Sandy) wholesale prices increased sooner for the spring selling season than they historically have in the past,” officials said.

“This early rise along with Social Security tax increases has caused a bit of a plateau in the wholesale market. The consumer confidence index dropped eight points from 66.7 in December to 58.6 in January. After consumers grow accustomed to less take-home pay and begin to receive their tax refund checks, expect average wholesale prices to begin increasing again in the middle part of February through March, at which time consumer activity should pick up,” NADA UCG further explained.

Breaking the numbers down by segment, used prices for the large SUV segment are expected to decline the most over the course of the this week, falling 0.3 percent, or $75.

The luxury car segment is also expected to decline slightly, predicted to decrease by 0.1 percent, or $25.

On the other hand, the compact utility and midsize van segments are both positioned to see small growth over the course of the current week, as prices there are expected to creep up by 0.2 percent, or $25, apiece.

All remaining segments are expected to remain unchanged versus their two-week average, officials concluded.

Four- and two-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles up to five years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are based on NADA's proprietary used-vehicle value model which includes assumptions for new-vehicle prices, used-vehicle supply, gasoline prices and other economic factors.
 

NADA Segment Average AuctionNet® Wholesale Price 2-Week v. Current
4-Week Average 2-Week Average Current Week % Change $ Change
Compact Car $10,650 $10,925 $10,925 0.0% $0
Compact Utility $15,300 $15,550 $15,575 0.2% $25
Industry Average $16,250 $16,425 $16,425 0.0% $0
Large Pickup $20,775 $21,075 $21,075 0.0% $0
Large SUV $28,575 $29,050 $28,975 -0.3% ($75)
Luxury Car $23,925 $23,875 $23,850 -0.1% ($25)
Luxury Utility $27,500 $27,550 $27,550 0.0% $0
Mid-Size Car $12,850 $13,175 $13,175 0.0% $0
Mid-Size Utility $19,175 $19,150 $19,150 0.0% $0
Mid-Size Van $15,525 $16,000 $16,025 0.2% $25

 

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