McLEAN, Va. -

Wholesale prices are still on the way up, though the rate increases are expected to be very slight this week.

NADA Used Car Guide told Auto Remarketing that similar to last week, it expects used-vehicle prices to subtly climb; increasing by 0.2 percent, or $25, this time around.

“Across segments, expected changes are predominantly positive, with prices for only two segments, large SUVs and luxury cars, predicted to remain unchanged or to decline slightly,” NADA officials reported.

The organization also explained that these recent trends support its outlook that wholesale prices will begin to increase at an accelerated rate towards the end of February and through March .  

“This is moderately later than what is typically observed for the period and is attributable to the pull ahead in demand associated with Hurricane Sandy and the slight delay in the IRS’ acceptance of 2012 tax returns,” officials continued.

Furthermore, NADA stresses it’s very likely that some consumers were taken aback by the “income bite” associated with the expired 2 percent payroll tax holiday that occurred at the start of the year.  

“This is likely giving some consumers pause as they become accustomed to less — or at least less than they had expected — take home pay,” officials added.

And it seems gas prices still remain high year-over-year, which may affect wholesale prices in the future if it continues to rise.

Per Energy Information Administration data  released this week, the average price of regular grade gasoline (all formulations) increased by seven cents from $3.54 to 3.61.  

“This is nine cents higher than  that was recorded for the same week last year, as well as the highest nominal level of gasoline prices for the period ever recorded,” NADA reported.

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 $10,875 $10,850 $10,875 0.2% $25
Compact Utility $15,575 $15,425 $15,450 0.2% $25
Industry Average $16,400 $16,450 $16,475 0.2% $25
Large Pickup $21,100 $20,925 $20,950 0.1% $25
Large SUV $28,900 $28,850 $28,850 0.0% $0
Luxury Car $23,950 $23,850 $23,800 -0.2% ($50)
Luxury Utility $27,500 $27,650 $27,675 0.1% $25
Mid-Size Car $13,150 $13,025 $13,050 0.2% $25
Mid-Size Utility $19,150 $19,125 $19,150 0.1% $25
Mid-Size Van $15,950 $16,200 $16,275 0.5% $75


 

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