For dealers trying to gauge just how much they will be spending in the lanes this month, NADA Used Car Guide's latest Guidelines report may be of particular interest.

Though auction prices have been falling all spring, NADA expects that June’s rate of depreciation will be smaller than May’s decline of 2.1 percent.

Dealers will most likely still see a small decline in wholesale prices this month, but it will be modest. Various factors that have affected used-car prices in the previous months, such as spiking gas prices, are not as sensitive an issue this month.

“There is little evidence to suggest a substantive negative change in any of the major drivers underpinning used price performance, and in fact, with gasoline prices holding steady and consumer sentiment at its highest level since 2007, June is expected to turn in an above-average performance for the month,” said NADA UCG's Jonathan Banks.

As such, values in June’s edition of the Official Used Car Guide were reduced by an average of 1.3 percent.
NADA also explained that many of the segment trends seen earlier this spring are expected to continue through June.

Continuing a trend seen in May, NADA predicts that compact and midsize car prices will see the biggest price drops this month. The midsize utility and luxury utility depreciation rates are expected to follow closely behind, according to NADA.

Meanwhile, large pickup prices, which have remained strong against the industry trend this spring — due in part to an improving housing market and increased construction — are expected to experience minimal price drops again this month.

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