As many in the industry know, used vehicle supply has been steadily falling over the past few years due to the substantial drop-off in new vehicle sales and lease originations.  In fact, NADA estimates that the supply of used vehicles up to five years in age was 17% lower in 2011 than it was in 2008. 

The ongoing erosion in supply has been one of the primary catalysts behind the 15% increase in used vehicle prices since 2008, and NADA is forecasting that further declines will continue to pressure up used prices throughout the remainder of this year.

Given its prolonged downturn and the steady recovery in new vehicle sales over the past couple of years, many in the industry are wondering when used supply will hit bottom and start to grow again and what the implications will be for used vehicle prices in the meantime. 

Recently NADA published a white paper entitled “Used Vehicle Supply:  Future Outlook and the Impact on Used Vehicle Prices” to address these questions.  Highlights of the paper include:

 When to expect an increase in used supply
 Recent trends in new vehicle sales
 Changes in used supply by vehicle segment
 A large-SUV used price study
 A used vehicle price forecast for 2012.

If you are interested in reading the full report, download it here.  In addition to gaining access to NADA’s long-term used supply forecast, the paper will leave readers with a better understanding of just how influential used supply has been on used vehicle prices to-date and how this critical component will continue to support prices near-term.