Wholesale Prices on The Way Down as May Kicks Off

McLEAN, Va. –

As potentially welcome news to dealers, wholesale price movement is expected to continue weakening this week, according to NADA Used Car Guide. 

Prices are expected to decline by 0.3 percent or $50, relative to the two-week average.

Breaking it down by segment, the midsize cars are expected to drop the most, by 0.8 percent or $100, NADA UCG officials said.

Both the compact utilities and mid-size utilities are both expected to drop by 0.3 percent or $50.

On opposite ends of the spectrum, NADA UCG predicts the compact cars and large SUVs will experience slight declines of 0.2 percent or $25 apiece.

On the other hand, large pickups “continue to show strength,” NADA UCG said, and are expected to rise by 0.2 percent or $50.

As for highline vehicles, both luxury cars and luxury utilities are expected to tick up by 0.1 percent or $25 apiece, while the mid-size van segment is expected to see some of the biggest growth at 0.5 percent or $75.

“We should continue to see small declines in the industry average throughout the month of May,” NADA UCG reiterated.

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.