NADA UCG: Compact Car Wholesale Prices Climb, Moderating Fuel Prices to Influence Trade-ins

According to this week’s installment of exclusive AuctionNet Wholesale Price and Forecast Data provided by NADA Used Car Guide to Auto Remarketing, wholesale price trends are reflecting the influence of this spring’s gas-price spike. 

With more consumers turning towards gas sippers and dealers eager to get these units on their lots, wholesale prices for the compact car segment are expected to rise by 2.6 percent or $300 over the course of the current week, according to NADA UCG.

Moreover, the 2-week average rate of growth for compact cars continues to lead other segments at 2.9 percent. 

And compact utility prices are also expected to climb, predicted to rise by 1.1 percent or $175 over the course of the current week.

That said, NADA UCG reported that wholesale prices remain “solid” across the board — except for large SUVs.

In perhaps some not surprising news, this segment is expected to “continue on their downward path,” falling 1.1 percent or $275 over the course of the current week, officials noted.

This decline marks a slight rise from last week, when prices fell by $250.

Lastly, luxury car segment prices are also expected to  fall by 0.4 percent or $100.

Are Fuel Prices Evening Out?

Interestingly, NADA UCG found that per the Energy Information Administration, the average price of regular grade gasoline fell slightly from $3.94 per gallon to $3.92 this week. 

“This marks the first decline in average price of regular grade gasoline since December 19, 2011 where prices dropped from $3.29 per gallon to $3.23 per gallon,” officials noted.

And how will this effect the industry?

NADA UCG officials explained that “a seasonal peak and moderating fuel prices”  will contribute to trade-in values on used cars peaking in April and staying “firm” through May before starting to recede in June. 

“We’re already starting to see signs of this as the current week’s forecast rate of growth is  $100 less than last week’s,” the organization concluded.