WASHINGTON — Generous incentives on new cars, trucks and SUVs, and a growing supply of used vehicles continues to put pressure on used car prices.
McLean-based the National Automobile Dealers Association says wholesale prices of vehicles up to eight years old fell by 3.6 percent in September, making the month’s performance the largest decline recorded in 2016. As a result, its used car guide says used vehicle prices at the consumer level fell by 1 percent, pushing its used car price index to the lowest since March 2011.
It makes for very attractive prices on late-model vehicles that have most of the options, technology and features that their new model counterparts have.
“During the recession when new car sales dropped so dramatically, that took away the future used car supply. That is coming back, now that we’ve had a few years or robust recovery,” says NADA’s Jonathan Banks.
Used small cars are seeing the one of biggest decline in prices. Subcompact and compact car segment losses reached 4 percent in September, NADA says.
Luxury mid-sized and compact utility losses were the largest of the luxury segment, down by just under 4 percent.
NADA expects similar price declines in the used car segment for October, before the depreciation rate slows in November.
