NADA UCG: Compact Car Segment Wholesale-Price Drops See Slight Ease

Though compact car segment wholesale prices are expected to fall slightly this week, it seems the dramatic decline brought on in part by declining gas prices may be slowing down.

According to NADA Used Car Guide, though the prices for this segment are still predicted to decline the most of any of any segment (2.1 percent of $225), the drops will likely be slightly smaller than last week.

To view last week’s wholesale price analysis from NADA UCG, see the Auto Remarketing story here.

NADA UCG noted that “normal seasonal deprecation coupled with rapidly declining gasoline prices continues to apply downward pressure in this fuel volatile segment.”

In fact, per Energy Information Administration data released this week, the average price of regular grade gasoline (all formulations) fell nine cents from $3.53 to $3.44. 

The average price of regular grade gas has now fallen 50 cents since peaking at $3.94 in April, NADA UCG reported.

The compact car segment also saw the biggest drop off for the two-week average rate of depreciation, falling 2.9 percent. This segment was followed by the midsize car and midsize utility segments at 2.7 percent apiece.

Next up, midsize cars are expected to see declines around 2.0 percent or $250 this week, and luxury cars are also expected to drop .9 percent or $200.

As for the light-duty truck side of the market, NADA UCG reported the midsize utility segment is expected to see the biggest declines, falling by  1.8 percent or $325.  

Moreover, the midsize van, compact utility and luxury utility segments are all expected to drop by 1.0 percent apiece over the course of the current week.

Lastly, even though gas prices continue to decline, and large pickup and large SUV segments become potentially more attractive to consumers, they have not seen any upticks in prices in the lanes.

The large pickup and large SUV segments are expected to see declines of .9 percent and .5 percent, 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 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.