Prices in The Lanes Expected to Drop $75 This Week

Wholesale prices are continuing to correct after experiencing seasonal highs earlier this spring.

Using its AuctionNet data and analysis, NADA Used Car Guide is predicting prices to fall by 0.4 percent or $75 this week.

And only one segment is expected to see prices lift: midsize vans, which are predicted to see price gains of 0.3 percent, or $50.

The majority of segments will see prices drop, led by the compact utility segment, with average declines of 0.9 percent, or $150.

The midsize utility and midsize car segments will follow with predicted declines of 0.8 percent and 0.7 percent, respectively.

Seeing slighter declines this week are the compact and luxury segments as prices are expected to slip by 0.6 percent, according to NADA UCG data.

Lastly, large pickups and SUVs are each expected to see declines of around 0.2 percent, followed by luxury utilities at 0.1 percent.

One can only wonder if these larger units may see bigger price declines in the near future, as gas prices are a bit inflated, sitting at $3.68 per gallon, according to Energy Information Administration data.  

These price drops continue trends seen in the lanes last week, as Black Book’s Ricky Beggs reported Monday.

Though 54 percent of the overall price changes in the lanes last week were still increases, this number was the lowest percentage of increases since the week of March 14, the Black Book editorial director and senior vice president noted in his latest “Beggs on the Used Car Market” video report.

Commenting on dealer response in the lanes last week, Beggs said, “A sign of tax season being behind us was supported with a comment about the ‘budget cars are down.’ The comment that really said it all was that we just had a ‘regular end of the month sale.’”

This past week, only four of the 10 car segments saw prices increase at auction. For more from Black Book on last week’s price movement, click here.

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.