Used vehicle market slows for 5th consecutive month, J.D. Power finds
New vehicle sales also decline.
MCLEAN, Va., Feb. 27, 2019 /PRNewswire/ — In the February 2019 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note that the used vehicle market slowed once again in January, marking the fifth consecutive month of decline.
As a result, the Seasonally Adjusted Used Vehicle Price Index declined by 2.7 points, relative to December, to 117.2.
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Despite the index’s sharp decline, it currently sits 2.3 percent above January 2018’s level.
Highlights from the free monthly report point out:
Wholesale Prices Decline in January
- Prices down by an average of 2.5 percent
Used Vehicle Price Index Down
- Index falls for 5th consecutive month to 117.2
New Vehicle Sales Slow
- Sales fall 2.1 percent, SAAR reaches 16.6 M units
Incentive Spending Declines
- Incentives decrease by 1.9 percent to $3,846 per unit
“We are expecting the used market to slow in 2019 with used prices forecasted to decline by 1 to 1.5%. There should be increases in used supply once again this year along with more volatile credit conditions and increasing gasoline prices with are expected to apply pressure on the used market.”
— David Paris, executive analyst at J.D. Power Valuation Services