Used-Vehicle Sales Up; Prices Set to Decline in 2015
SAN FRANCISCO (Jan. 23, 2015) – The used-vehicle market had another bumper year in 2014, with sales up 1.1 percent from 2013, said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide, at the 2015 NADA Convention & Expo in New San Francisco.
In addition, 2014 marks the eighth-lowest year in used-vehicle depreciation since 1997, with large pick ups dropping only 6.6 percent and most other segments staying in the 12 percent to 16 percent drop-off range. The largest depreciation dip was in luxury vehicles with compacts dropping 16.3 percent, mid-size down 19.4 percent, and large down 21.7 percent.
Banks predicted that used-car prices will fall 2 percent to 2.5 percent in 2015 as an increased supply of used cars, many coming off leases, will boost availability. But, he noted, that fall will occur from prices that are at historical highs.
“As new sales growth slows, automaker pricing discipline will be challenged, he said, calling it a major wild card. “The increased volume is great for customers.”
Known as “The Automotive Industry Event of the Year,” the NADA show runs concurrently with the American Truck Dealers Convention & Expo. Both shows conclude Jan. 25. For more information, visit www.nadaconvention.org.