Fuel Rates Increase; Wholesale Prices for Gas Sippers Slow Downward Spiral

As gas prices increase for the first time in months this week, compact car wholesale prices have slowed their downward spiral and another segment is set to take the biggest rate cut in the lanes.

According to NADA Used Car Guide, the midsize utility segment is expected to see the biggest drops over the course of the current week, as prices are expected to fall around 2.6 percent or $450. 

Following closely behind will be the compact utility segment, which is expected to decline by 2.5 percent or $350, officials reported.

And the midsize utility segment also saw the highest drop-off for the two-week average rate of depreciation, declining 3.4 percent, followed by the compact car segment at 3.3 percent and midsize van segments at 3.1 percent. 

And after the Energy Information Administration data released on Monday revealed the average price of regular grade gasoline (all formulations) increased  from $3.35 to $3.41, it seems gas sippers’ declining price spiral has slowed.

“This week’s rate of decline for the compact car segment is predicted to remain flat in comparison to last week’s estimates as prices for the segment are expected to drop 2.4 percent or $250 over the course of the current week,” NADA UCG explained.

And the remaining segments NADA UCG tracks all saw declines, as well.

The midsize car segment and midsize van segments are expected to decline again this week, this time by 2.0 percent apiece.
 
Wrapping up its commentary on wholesale prices for the week, NADA UCG officials noted that the luxury utility (1.4 percent), luxury car (1 percent), large pickup (1 percent) and large SUV (.7 percent) segments are all expected to fall over the course of the current week, as well.

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.

More AuctionNet Trends

Sharing some more used-vehicle data, NADA Used Car Guide released its monthly Guidelines report late Wednesday afternoon.

Looking at how wholesale prices behaved for the entire month of June, NADA Used Car Guide’s Jonathan Banks noted: “AuctionNet wholesale price movement in June remained true to seasonal form as the softness in demand typically witnessed after the spring helped to pull overall market prices down by $300 or 1.7 percent compared to May.

“The steep 60-cent slice in gasoline prices over the past two months continued to place significant downward pressure on compact and midsize car prices, and as a result, the 3.7-percent and 3.3-percent respective fall for each led all other segments by a wide margin,” he added.

On a year-over-year basis, AuctionNet prices in June were down 1.5 percent. Midsize cars (down 5.6 percent from June 2011) led all declines, while large pickups (up 7.9 percent) showed the highest increase and were one of three segments to jump year-over-year. The others were large SUVs (up 3.1 percent) and midsize utilities (up 4.2 percent).

Editor’s note: Auto Remarketing will have more comprehensive analysis from the latest Guidelines report in upcoming editions of Auto Remarketing Today.

NADA Used Car Guide also provided a chart of the most recent AuctionNet trending: