South of the border, the National Automobile Dealers Association (NADA) has released a short term forecast that predicts a drop in used vehicle prices next month. Based on gathered data, along with insights on used car and light truck prices, plus market trends and the overall economic outlook, NADA says that prices are expected to decline between 3 per cent in July, with some segments, particularly compact and mid-size cars dropping between 3.5 and 4.5 per cent.
Jonathan Banks, a senior analyst with the NADA’s Used Car Guide, said that, “falling gasoline prices will result in greater depreciation of compact and midsize cars but will help moderate losses for light trucks, such as large pickups and SUVs.”
NADA has already seen used car prices decline this month. According to recent available data, prices of compact and mid-size cars have dropped by 2.5 and 2.8 per cent so far this month, with other segments experiencing price declines between 0.4 and 1.8 per cent during the same period.
Despite current and short-term projected price declines, NADA remains optimistic for the year, predicting an overall 0.7 per cent price increase from June through December 2012.