NADA UCG: Compact Cars Continue Wholesale Price Slide

May 24, 2012 | McLEAN, Va.

As nearly all the wholesale price segments NADA Used Car guide tracks are expected to fall over the course of this week, it may perhaps be surprising just which units may see a slight uptick.

After the gas price surge left compact-car prices soaring, the declining fuel rate may play a part in the predicted increase in wholesale price for midsize vans and luxury cars — expected to rise a slight 0.7 percent or $100 and 0.1 percent or $25, respectively.

On the other hand, the compact utility segment is expected to see the biggest drop at 2 percent, or $300, followed closely behind by the luxury utility ($475), large SUV ($450) and compact car ($200) segments. Each of those three are expected to fall by 1.8 percent, according to NADA UCG.

And this is the third week in a row that compact car segment prices are predicted to fall, following gas prices downward.

Per Energy Information Administration data released this week, the average price of regular grade gasoline fell four cents from $3.75 to $3.71 —  the seventh week in a row that the average price of regular grade gasoline has decreased.

And as for the midsize car segment, their rates are expected to fall as well, sliding 1.7 percent over the course of this week.

This segment is followed by large pickups and midsize utilities, predicted to slide 0.9 percent and 0.5 percent, respectively

Lastly, NADA UCG officials noted that the two-week average rate of growth for all segments declined slightly, with compact cars and midsize cars declining the most of any segment by 2.4 percent  a piece.

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.

 

 

 

 

 

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