NADA Predicts Strong Used Vehicle Market
According to the National Automobile Dealer's Association, the boost in used-vehicle demand caused by hurricane Sandy will result in stronger prices. “Prior to Sandy, we expected used-vehicle prices to drop by 2.1 percent in November. But the impact of the storm and the continuing tight supply of late-model vehicles plus strong demand slowed depreciation to 1 percent,” said Jonathan Banks, executive automotive analyst with the NADA Used Car Guide. According to the organization, used-vehicle prices for cars and light-trucks up to 8-years-old were buoyed by Hurricane Sandy, resulting in stronger than expected prices in November.
“Trade-in values for compact utilities, compact luxury utilities and compact and mid-size cars will be strong in December with values either essentially flat or in certain cases higher compared to last month,” Banks added.
On the new-vehicle side of the market, December is usually a good month to purchase a new car or light truck because manufacturers typically increase incentive spending in an effort to sell as many vehicles as possible before the end the year.
“As the year comes to a close, many manufacturers are extending or enhancing already favorable special financing promotions and adding to customer cash incentives,” Banks added. “Car shoppers should find December a great month to purchase a new or a late-model, pre-owned vehicle because of the additional strength in trade-in values along with year-end promotions on many new models.” For more information, visit www.nada.com/b2b.