NADA UCG Connects August New-Sales Performance to Used-Price Trends to See by Year’s End
NADA Used Car Guide executive automotive analyst Jonathan Banks explained how last month’s headline-grabbing new-vehicle sales performance is creating price trends in the used-vehicle space that ought to delight dealers.
Banks recapped how franchised dealers turned 1.5 million new models in August.
This pushed the new-vehicle seasonally adjusted annualized rate above 16 million for the first time in six years.
(Comparatively, CNW Research found that there were 4.1 million used-vehicle sales in August, when combining sales at franchised and independent dealerships as well as private-party transactions. This marked a 5.6-percent year-over-year gain and the fourth straight month of used sales topping the 4-million mark. According to CNW’s data, a streak that long hasn’t been seen since 2007 when the span from May through September surpassed that mark.)
“When August’s strength is combined with the slightly more positive outlook for the remainder of the year, NADA expects that for all of 2013 the average price in units up to 8 years in age will be up by a material 1 percent relative to 2012 instead of remaining essentially flat as previously predicted,” he said.
Banks’ summary of factors and trends that prompted NADA UGC to arrive at that assertion can be found in the video below.
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