NADA UCG: Wholesale Prices Slide, Compact Car Segment Falls Fourth Week in a Row

As NADA Used Car Guide predicted earlier this week that used-car prices would slide for the first time this year come June, it seems AuctionNet trends are following suit.

Once again, nearly all the wholesale vehicle segments NADA tracks are expected to experience declines over the course of the current week.

The exception?  The luxury utility segment is predicted to be the only segment to see a price rise in the lanes, as it is expected to rise a slight 0.2 percent or $50.

On the other hand, the midsize van segment is expected to see the biggest drop, predicted to fall 4.3 percent or $650.

Following closely behind, the large pickup segment ($450), midsize car ($325) and compact utility ($325) segments are all expected to fall by more than 2.2 percent apiece.

And as gas prices continue to fall — the Energy Information Administration data released this week notes the average price of regular grade gasoline (all formulations) fell four cents from $3.71 to $3.67 — wholesale prices for the compact car segment are sliding down, as well.

In fact, this is the fourth week in a row that compact car segment prices are predicted to fall, this time by 2.0 percent or $225, NADA UCG reported.

Officials also noted this decline  is the most “aggressive” estimated decline year-to-date for the segment, as the average price for regular grade gasoline falls for the eighth week in a row.

Moving along, the mid-size utility segment is expected to drop by 1.5 percent over the course of the current week, followed by the large SUV and luxury utility segment at 0.7 percent and 0.4 percent, respectively. 

Wrapping up its commentary, NADA UCG officials noted the two-week average rate of changed for all segments declined slightly. Compact cars declined the most of any segment by 2.8 percent, followed by midsize cars and mid-size vans, which fell by 2.6 percent apiece.

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.