NADA UCG: Wholesale Prices Remain Solid, Effects of Rising Gas Prices Evident

In the first installment of exclusive AuctionNet Wholesale Price and Forecast Data provided by NADA Used Car Guide to Auto Remarketing, wholesale prices remain consistent, but the effect of rising gas prices is “undeniably evident,” the organization stressed.

And some segments, though not normally thought of as gas sippers, are also benefiting from the spring season.

Mid-size vans continue to “benefit not only from lift normally associated with the spring selling season, but also from an ongoing reduction in supply and the versatility (capacity and relative fuel economy) the segment has to offer,” NADA Used Car Guide explained.

The two-week average rate of growth in wholesale prices for this segment led all other segments by 3.8 percent, according to the organization’s AuctionNet data.

And NADA UCG expects wholesale prices for this segment to rise by 3 percent, or $475, over the course of this week.

Following closely behind, the rate of growth for compact car and mid-size car segments has made significant jumps, as well, perhaps reflecting the recent climb in gas prices.

The compact car segment wholesale prices jumped 3.7 percent, and the mid-size car segment saw a rise of 3.2 percent.

“Price growth for the current week is  expected to slow somewhat to 2.5 percent for the compact car segment and 1.6 percent for the mid-size car segment,” NADA Used Car Guide further explained.

On the other hand, indicative of the season change and fuel-price trend, large pickup, large SUV and luxury utility prices have fallen behind other segments.

And NADA UCG analysts expect prices for large pickups and luxury utilities to stay relatively flat.

But large SUVs are expected to see more of a change, falling by 2.3 percent, or an average of $600, the organization concluded.

4- and 2-week AuctionNet wholesale average prices are created by collecting all AuctionNet records for vehicles up to five years of age for a specified period of time.  Prices are then adjusted for changes in mileage and mix.

Current week prices are forecasted based on NADA's proprietary used vehicle value model which includes assumptions for new vehicle prices, used vehicle supply, gasoline prices and other economic factors.

Average AuctionNet® Wholesale Price

Editors Note: Auto Remarketing will be receiving these AuctionNet data updates weekly. Keep an eye out for the next installment in your Auto Remarketing Today e-newsletter.

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