By J.D. Power, Special for USDR
Analysts at J.D. Power Valuation Services note in their July 2017 Used Car and Light Truck Guidelines Industry Update that wholesale depreciation was historically normal in June and declined by an average of 2.2 percent.
Highlights from the free monthly report also point out:
- The J.D. Power Used Vehicle Price Index remained flat in June.
- Index was static at 111.1.
- New vehicle deliveries were down for the month.
- Sales slipped by 3.2 percent and the new vehicle SAAR reached 16.41M.
- Incentive spending experienced double-digit growth.
- Average spending per unit increased 11.6 percent.
When asked about June’s performance, David Paris, executive analyst at J.D. Power Valuation Services said, “On the depreciation side of the market, everything performed as expected based off historical averages. However, even though our index remained unchanged versus May, it was much lower—about 7.6 percent lower—than June of last year.”
Paris went on to say, “This July, we expect wholesale prices of vehicles up to 8 years in age to fall about 2 percent. For the year, we still believe used prices will decline by around 6 percent, which is 2 points worse than 2016’s 4 percent loss.”
About J.D. Power
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 is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments firm headquartered in London, and is led by its four founders; Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.
J.D. Power recently acquired NADA Used Car Guide (now J.D. Power Valuation Services), which 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.
SOURCE J.D. Power