CONSUMER ALERT - NADA Says Used-Car Prices Hit the Skids in June
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After double-digit percentage gains from January through May 2012, prices on many popular used compact and midsize cars are expected to drop up to 5 percent in June compared to May, said Jonathan Banks, senior analyst with the National Automobile Dealers Association (NADA) Used Car Guide.
"The trend of rising prices for used cars will reverse course in June because of declining gasoline prices combined with a normal seasonal slowdown in consumer demand for used cars," Banks said.
Used-car values will decline by about 2 percent, while truck values will fall by about 1 percent or half of the amount of cars, according to the June edition of the NADA Official Used Car Guide. Prices for used compact and midsize cars will fall by an average of 2.4 percent and many used cars will see larger declines. (See chart.)
Used-Car Prices Show Dramatic Declines in June Compared to May
Model Year Make/Model Jan. May Jan.-May June June vs. May . June vs. May
(% Chg.) $ Chg % Chg
2009 Toyota Camry $11,510 $13,235 15% $12,560 - $675 - 5%
2009 Honda Civic $10,987 $12,187 11% $11,587 - $600 - 5%
2011 Toyota Prius $18,875 $21,225 12% $20,325 - $900 - 4%
2010 Hyundai Elantra $10,742 $12,167 13% $11,667 - $500 - 4%
2011 Nissan Versa $10,527 $11,702 11% $11,252 - $450 - 4%
2009 Dodge Caliber $8,132 $9,157 13% $8,807 - $350 - 4%
2011 Ford Fusion $14,237 $15,662 10% $15,112 - $550 - 4%
2009 Chevrolet Cobalt $7,465 $8,565 15% $8,265 - $300 - 4% Source: NADA Used Car Guide
For example, after appreciating by $1,200 or 11 percent from January through May, the value of a 2009 Honda Civic Sedan 4D LX will fall by $600 in June.
"Prices on the Toyota Prius will drop even more dramatically in June," Banks said. "Rapid depreciation for hybrid vehicles is not uncommon after surging gasoline prices reach a peak and then begin to quickly fall."
After increasing in value by $2,350 from January through May, prices on the 2011 Toyota Prius Liftback 5D will fall $900 in June, according to the NADA Used Car Guide.
"During periods of rapidly changing gasoline prices, values of hybrid vehicles become more volatile because consumer demand for hybrids rises and falls along with the price of gasoline," Banks added.
For example, when gasoline prices increased during the first four months of 2011, the 2009 Toyota Prius increased in value by about $4,500 from January through April 2011. In the fall of 2011, the Prius dropped in value by $4,800.
Looking ahead to July, the NADA Used Car Guide is forecasting that depreciation for small and midsize cars, which experienced the greatest appreciation over the first part of 2012, will see values continue to drop sharply.
About the NADA Used Car Guide
Over a 79-year history, the NADA Used Car Guide has earned its reputation as the leading provider of accurate vehicle valuations and auction data. NADA offers a wide range of vehicle values, including those for used passenger car, light-duty and commercial truck, motorcycle, classic car and many more specialty vehicles. Available in a variety of delivery methods, NADA's products and services are used daily throughout the auto, finance, fleet-lease, government and insurance industries. For more information, visit www.nada.com/b2b .
The NADA Story
The NADA story began in 1917 when 30 auto dealers traveled to the nation's capital to convince Congress not to impose a luxury tax on the automobile. They successfully argued that the automobile is a necessity of American life, not a luxury. From that experience was born the National Automobile Dealers Association. Today, NADA represents nearly 16,000 new-car and -truck dealers, with 32,500 franchises, both domestic and international. For more information, visit www.nada.org and follow NADA on Facebook and Twitter.
