NADA UCG: Prices of Fuel-Efficient Used Cars to Stay High in August

Stemming from a belief that used-vehicle prices likely peaked in June, NADA Used Car Guide insisted average trade-in values of many popular, fuel-efficient small units from the 2006-2009 model years are still expected to be higher next month than when the year started.

In fact, senior analyst Jonathan Banks projected these average trade-in values to be 10 to 30 percent higher in August than they were at the beginning of 2011.

For example, Banks said average trade-in values for the Toyota Prius are expected to be 30 percent higher in August compared to January.

Over the same time period, NADA Used Car Guide calculated the Chevrolet Aveo is expected to be up 21 percent.

Banks listed several other models, too, including Kia Spectra (up 19 percent), Hyundai Accent (up 17 percent), Nissan Versa (up 16 percent), Ford Focus (up 15 percent), Honda Civic (up 14 percent) and Dodge Caliber (up 13 percent).

“Car owners still have a lot of equity built up in their used cars, which puts them in a better financial position to make a down payment on a new vehicle,” Banks explained.

“Looking ahead to the fall, we expect prices on used small cars to drop slightly as consumer demand for new cars increases with the arrival of the 2012 model year, a new round of manufacturer incentives and moderating gasoline prices,” he continued.

Banks reiterated that NADA Used Car Guide average values for the compact and midsize car segment peaked in June, increasing by 18 percent and 13 percent, respectively, from January.

During the same six-month period, he pointed out values for the overall market declined by 1.4 percent led by a steep drop in demand for large SUVs and pickups.