U.S. used vehicle prices have increased for the first time in six months, according to analysts at J.D. Power Valuation Services.
During this period the market experienced consistent declines, but has since improved in March, around the same time the Canadian Black Book Used Vehicle Value Index rebounded.
In the U.S., J.D. Power said its Seasonally Adjusted Used Vehicle Price Index increased by 1.1 points to 117.5, relative to February 2019. “March’s positive result comes after weaker than usual January and February 2019 performances.”
According to J.D. Power’s April industry review, wholesale prices increased in March (along with the used vehicle index), with prices up by an average of 2.7 per cent. At the same time, the new vehicle market is struggling with sales and has declined 2.2 per cent with the seasonally adjusted annual rate (SAAR) reaching 17.48 million.
“In terms of full-year 2019 expectations, the used market is expected to slow in 2019,” said David Paris, Executive Analyst at J.D. Power Valuation Services. “As a result, prices are forecast to fall by around 2 per cent. Increasing levels of used supply along with more volatile credit conditions and increasing gas prices, which are expected to apply downward pressure on the used car market.”
The report also indicates that incentive spending has declined, dropping 5.2 per cent to $3,799 per unit in March. “This was the first-time incentives have dropped below $3,800 since June 2017, and remains a good sign that manufacturers are keeping production and inventory aligned with demand,” the review stated.
