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New and Used Car Demand Remains High
Thursday, September 17, 2015 6:35 AM

For those operating in the used car market, calculations on the wholesale value of the vehicle should be a factor in lending. According to the National Automotive Dealers Association, the value of used cars has fallen from four to 16 percent this year. Those vehicles with the greatest loss in value are luxury large cars and subcompacts. The vehicles with the least loss in value are large and medium-sized pickups.

Change in Wholesale Used Vehicle Prices

Year to date sales volumes in used cars has been 2.81 million units, up six percent over the same period last year.

New car sales volume has been exceptional. The seasonally adjusted annual rate (SAAR) soared to 17.72 million units last month, which is a 10-year high for August. Demand for new vehicles has far exceeded expectations.

Change in NADA Used Car Guide Value

Per Autodata, average incentive spending in August reached $3,102 per unit, which represents a 3.3 percent increase from a year ago. Through the first eight months of 2015, spending has climbed by 3.2 percent versus last year.

Currently the new car market has a 55 day supply of vehicles, down slightly from an average of 65 days, indicating that new sales continue to be brisk even during model change-overs.

Source:  NADA Guidelines, 14 September 2015