In the June 2018 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note the used vehicle market turned a typical performance in May.
As a result, the J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index remained flat, compared to April at 117.0. May’s index increased 3.1 points year over year, and 2.5 points above where it sat in January.
Dramatic shifts in used vehicle pricing can affect aftermarket business as that can act as either incentives to trade up to new vehicles, or incentives to buy used. Shifts can also affect collision industry players due to the way insurance companies calculate total loss.
Highlights from the free monthly report also point out:
- Wholesale Prices Decline in May
- Prices fall by an average of 1.7%
- Used Vehicle Price Index Remains Unchanged
- Index holds at 117.0
- New Vehicle Sales Increase
- Sales grow 4.8%, new vehicle SAAR reaches 16.81
- Incentive Spending Increased
- Incentives grow for 38th straight month
“Despite wholesale prices declining in May, the 2018 used vehicle market outlook remains positive,” said David Paris, Executive Analyst at J.D. Power Valuation Services. “Prices of vehicles up to eight years in age are expected to increase by 0.8% year over year.”