According to a report released today from National Automobile Dealers Association, a temperate seasonal demand will drive used car prices down over the next few months. The report, which outlined a short-term sales forecast, shows a smaller decrease in used car prices in June and a slightly bigger drop-off next month as well. Falling gas prices are attributed with why used vehicle prices will see a drop, but NADA doesn’t believe that all vehicles will see a decrease in price though.
“NADA’s current forecast points to used-vehicle prices dropping by three percent in July,” Jonathon Banks, senior analyst with NADA said. “Falling gasoline prices will result in greater depreciation of compact and midsize cars, but will help moderate losses for light trucks, such as large pickups and SUVs,” Banks added.
Used car prices are down 1.6 percent in June when compared against May and the compact and midsize car segment also dropped down 2.5 and 2.8, respectively. All other vehicle segments saw decreases between 0.8 and 1.4 percent. The only problem with Banks statement is that fuel prices continue to stay high even while the price of crude oil is coming down. According to AAA, the national average for a gallon of gas is $3.53 but the price for a barrel of oil is around $83. The current price for a barrel of oil is currently sitting at an 11-month low after reaching a peak of $150 per barrel back in 2008. The national average for gas then was $4.11.
Banks and crew are aware of this though and have said they don’t believe prices will stay down for the remainder of the year. In the recently released report, NADA predicts that all used vehicles will see a price spike somewhere near 0.7 percent between now and the end of the year.
“It’s important to note that used-car prices will remain at historically high levels through the end of the year, despite the expected seasonal softening,” Banks said in a statement released by NADA.
What say you? Are you more likely to buy a vehicle during the summer when prices are normally lower, or do you ride it out and wait until the winter to upgrade your ride? Tell us what you do in the comment section below.