Used vehicle market continues to strengthen
Outlook optimistic, yet tempered by COVID-19
In the July 2020 Used Car and Light Truck Guidelines Plus Industry Update, analysts from J.D. Power Valuation Services reported that wholesale used vehicle activity continued to improve over the course of June as the market fully recovered in terms of both sales and prices. On an index basis, J.D. Power’s Used Vehicle Price Index increased by 11.3% in June vs. May and prices ended the period 3.4% below June 2019’s level.
“While wholesale prices remain incredibly strong, expectations are that they will begin to drift lower heading into August as pent-up demand wanes and pandemic-related macro-economic headwinds increase, said David Paris, executive analyst at J.D. Power Valuation Services.
“By year’s end, prices are expected to be on par with pre-virus levels. It is important to note, however, that while the outlook is relatively optimistic, there remains a great deal of uncertainty surrounding the impact of new virus outbreaks, the potential for another round of federal stimulus, and overall employment conditions.”
Major findings in the Guidelines Plus report:
- Wholesale Prices Improve in June
- Prices increase by average 9.2%
- Used Vehicle Price Index Increases
- UVPI reaches 126.8
- Wholesale Sales Level Out
- Sales volume down 21.3% through June
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.
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power has offices serving North America, South America, Asia Pacific and Europe.