After falling by 1.1% in June, depreciation for used units up to eight model years in age crept to just 1.3% over the first few weeks of July. Although July’s month-to-date figure is a bit higher than June’s rate, depreciation (at least so far) is slightly better than what has historically been recorded for the month. As a result, NADA’s seasonally adjusted used vehicle price index fell slightly to 123.2 which was 0.1% less than June’s figure of 123.4.
Across segments, losses for the month are predominantly level with what was observed in June. Through the first few weeks of July, compact and mid-size cars led the pack in terms of depreciation falling by 2.0% and 1.7%, respectively, followed by mid-size vans at 1.6%.
Similarly to June, prices for the majority of remaining segments – compact and mid-size utilities, luxury cars and utilities, and large pickups – have fallen within a tight range of 0.4-to-1.1% so far this July. Large SUVs are the only segment seeing any price appreciation so far this month, prices are currently up 0.9%.
NADA predicts that used vehicle depreciation will continue to increase slightly through the remaining weeks of July. Relative to June, overall used price declines should end up around 1.5-to-2.0% for the month, this is right in line with the 1.9% decrease reported in July’s edition of NADA’s Official Used Car Guide.