J.D. Power: ‘Used Vehicle Price Index’ slips for 6th consecutive month
New vehicle sales continue to decline.
MCLEAN, Va., March 22, 2019 /PRNewswire/ — In the March 2019 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note the used vehicle market continued its sluggish start to the new year, as a result the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index declined 1.3 points – relative to January – to 116.1.
February’s decline marked the sixth consecutive month of declines in the used market and is a trend we should expect to see more of throughout the course of 2019 as used vehicle prices are expected to decline relative to 2018.
Highlights from the free monthly report point out:
Wholesale Prices Decline in February
- Prices down by an average of 1.5%
Used Vehicle Price Index Down
- Index falls for 6th consecutive month to 116.1
New Vehicle Sales Drop
- Sales fall 2.4%, SAAR reaches 16.5 M units
Incentive Spending Declines
Incentives decrease by 2.7% to $3,873 per unit
“With January and February’s weaker than expected performances, 2019’s outlook has worsened. As a result, prices are forecast to fall by around 3%. Increasing levels of used supply along with more volatile credit conditions and increasing gasoline prices which are expected to apply downward pressure on the used side of the market.”
— David Paris, executive analyst, J.D. Power Valuation Services
J.D. Power Valuation Services (formerly NADA Used Car Guide) is a leading provider of vehicle valuation products and services to businesses. The team collects and analyzes more than 1 million automotive and truck wholesale and retail transactions per month, and delivers a range of guidebooks, auction data, analysis and data solutions.