Dealers may be enjoying a downtrend in wholesale prices in the near future, as NADA Used Car Guide says prices in the lanes for used cars and light trucks reached their “annual peak” in March.

In the April edition of its Guidelines report, NADA UCG reported that prices for used vehicles up to  eigth years old increased by 1.2 percent this past month, “substantially less than the 3-percent increase recorded for the month last year.”

And for April, NADA predicts that used-vehicle prices will fall by somewhere between 2 percent and 2.5 percent, “with depreciation accelerating towards the end of the month and continuing through May.” 

Jonathan Banks, executive automotive analyst for the NADA UCG, said, “Wholesale prices for used vehicles increased in February and March, but the price growth has been mild compared to what is typically seen for the period.”

Why the slow growth?

NADA UCG explained that it was caused by a few different factors, which included higher payroll taxes, delayed tax refunds and the “spike in demand” from Hurricane Sandy at the end of 2012.

Though March’s performance may have been weaker than usual for auction prices, the first quarter 2013 still ended with used-vehicle prices 0.9 percent higher compared to the same three months a year ago, said NADA UCG.

Specifically, ompact car prices increased 2.2 percent in March — the highest of any segment for the month. Prices for mid-size cars and vans increased by 1.3 percent, respectively.

“Gasoline prices, which grew by nearly 50 cents from December to late February, likely led to increased used-vehicle prices in the compact car segment compared to other segments,” Banks added.

“For large pickup trucks, the improved housing market has resulted in used prices growing by 1 percent despite the increasing supply of late-model used pickups.”

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