Wholesale Prices Follow Gas Rates Down

McLEAN, Va. –

As gas prices continue to fall for the fifth week in a row, wholesale prices seem to be dipping, as well, according to data on the segments NADA Used Car Guide tracks.

Officials from the organization noted that the majority of segments they track are expected to experience minor declines over the course of the current week.

In fact, the only segment expected to see any growth is midssize vans, where prices are forecasted to see a slight uptick of 0.2 percent of $25.

And in perhaps some not surprising news in light of the recent slide is fuel prices. Per Energy Information Administration data released this week, the average price of regular grade gasoline fell four cents from $3.83 to $3.79  — relative to the two-week average, compact car segment prices are expected to see a decline for the first time since the beginning of the year — prices for the current week are forecasted to drop by 0.9 percent or $10. 

That said, the two-week average rate of growth for compact cars still remained up 0.2 percent, while all other segments declined slightly. 

And which segments are expected to see the biggest declines this week?

Luxury utilities and large SUVs are predicted to fall by $325 and $300, respectively, marking the biggest dips out of all the segments.  

And midsize cars are expected to decline by $225, while both luxury car and compact utility segments are expected to fall by $200 apiece, NADA UCG reported.

Lastly, large pickup and mid-size utility prices are forecasted to fall by the amounts of $100 and $25, respectively.

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 forecasted 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.