Money & The Economy

Used Vehicle Price Index Slows for Second Consecutive Month

In the November 2018 Used Car and Light Truck Guidelines Industry Update, analysts at J.D. Power Valuation Services note that after decelerating in September, the used vehicle market slowed for the second consecutive month in October. As a result, the Seasonally Adjusted Used Vehicle Price Index decreased by 1 point, relative to September, to 120.6.

Highlights from the free monthly report point out:

  • Wholesale Prices Decline in October
    • Prices down by an average of 3.1%
  • Used Vehicle Price Index Slips
    • Index declines 1 point to 120.6
  • New Vehicle Sales Inch Up
    • Sales remain relatively flat, new vehicle SAAR reaches 17.46 million
  • Incentive Spending Decline
    • Incentives decline for the second time since April 2015

“Wholesale prices of used vehicles up to 8 years in age declined by an average of 3.1% in October, which was right in line with the period’s previous five-year average decline of 3%,” said David Paris, Executive Analyst at J.D. Power Valuation Services. “As expected, there wasn’t any noticeable strengthening in wholesale prices for the October period due to hurricane replacement demand.”

Carl Fox

Carl Fox is the senior money and finance writer for Conservative Daily News. Follow him in the "Money & The Economy" section at CDN and see his posts on the "Junior Economists" Facebook page.

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