Market prices for all NADA segments declined by an average of 2.1% through the first half of October or just over a half-percent more than the 1.5% fall recorded over the first half of September.
The increased rate of decline observed through the two weeks of October is normal for this time of the year when progressively softer prices are usually recorded through the better part of a given fourth quarter before prices pick back up again as the New Year approaches.
Downward new market price pressure stemming from 2013 model year redesigns of four of the segment’s top five selling models (Accord, Altima, Fusion, and Malibu) along with the usual seasonal influx of late-model off-rental units translated into a market-leading 3.2% drop in prices for the mid-size car segment.
The rate of decline observed in the mid-size van segment slowed a bit compared to last month’s 3.2% drop, but the 2.9% fall recorded so far this month was still elevated compared to other segments. Much like the mid-size car segment, rental fleet volume continues to push down prices in this segment as rental companies trim their fleet portfolios in preparation for the winter months.
Compact car prices have slipped by 1.9% so far this, but this is relatively mild when compared to the 3.2% average fall recorded over the previous five month period.
Looking at trucks and SUVs, the rate of decline for the large SUV segment slowed a bit over the first half of October to a market-best average of just 1.3%.
Remaining truck segments didn’t fare quite as well as large SUVs as all posted steeper declines over the period than what was recorded over the first half of September. Prices for the mid-size utility segment fell the most at 2.3%, which was followed closely by the compact utility segment’s drop of 2.2%. Depreciation for the large pickup segment continued to remain low at just 1.4%.
On the luxury side, both the luxury car and luxury utility segment decline ticked up through the first half of this month to an average of 1.7% apiece.
On the whole, the slightly larger fall in used vehicle prices witnessed month-to-date is reasonable considering historical seasonal patterns and it doesn’t indicate deteriorating market conditions.