U.S. used vehicle depreciation up slightly in December
is expected increase in prices.
As a result, the NADA Used Car Guide Seasonally Adjusted Used Vehicle Price Index fell by 1.6 percent from November to 122.4.
2015 was one of the strongest years on record.
Larry Dixon, senior manager of market intelligence at NADA Used Car Guide added, "Prices for nearly half a dozen segments fell between a range of 1.5 to 1.8 percent, with mid-size utility and luxury large car segments failing to exceed 1 percent."
The free monthly report notes that despite December's softness, 2015 was one of the strongest years on record from a net perspective. Used vehicle prices slipped by just 0.3 percent from 2014's all-time high average.
While depreciation increased from 12.7 percent to 14 percent, the rate of decline remained historically moderate.
The report concludes its used vehicle market analysis with a forecast of things to come. In the first quarter of 2016, prices of 8-year-old or newer vehicles will be flat-to-up a slight 0.5 percent in January versus December.
Prices are then expected to rise by roughly 1 percent per month in February and March. ■