NADA UCG: Wholesale Seasonal Peak ‘Set to Pass’, Prices Expected to Decline

The seasonal peak predicted by the organization to occur in April may be “set to pass”, NADA Used Car Guide officials said Wednesday, as prices for the majority of the wholesale segments they track are expected to decline slightly over the course of the current week.

According to NADA UCG AuctionNet Wholesale Price and Forecast Data, prices for luxury and large utility vehicles in the lanes will fall significantly, predicted to drop $325 and $575, respectively, this week.

Moreover,  mid-size cars and utilities are expected to fall by $100 apiece, while prices for luxury cars should fall slightly more by $125, NADA UCG reported.

And following the recent trend with gas prices high and consumers showing more interest in fuel-efficient vehicles, compact car segment prices are expected to rise by 0.6 percent or $75 over the course of this week.

Furthermore, the 2-week average rate of growth for compact cars continues to lead other segments at 2.0 percent.

That said,  this week marks the second week in a row that the average price of regular grade gasoline fell, and NADA is predicting that prices will level out at $3.90 per gallon this June.

Per the Energy Information Administration, the average price of regular grade gasoline (all formulations) fell five cents from $3.92 per gallon to $3.87 this week.

This downward trend could potentially slow the gas sipper wholesale price spikes if it continues. In fact, just last week, wholesale prices for the compact car segment were expected to rise by 2.6 percent or $300, according to NADA UCG.

Moreover, the two-week average rate of growth for compact cars continues to lead other segments at 2.9 percent; now it has fallen to 2 percent.

Moving along to additional wholesale segments NADA UCG tracks, mid-size van prices are expected to rise by 0.8 percent or $125, while the two-week average rate of growth for segment remained flat at 0.5 percent for the second week in a row.

Lastly, officials noted that large pickup prices are also expected to rise slightly by 0.4 percent or $75 over the course of the current week.

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.