As depreciation returned to the used market, cars fared worse than trucks, according to May’s Used Car Guide, recently released by the National Automobile Dealers Association.
“Trucks continue to do exceptionally well on the used side,” said Laurence Dixon, senior manager of market intelligence at NADA Used Car Guide. “Every truck category is outperforming their light-weight counterparts.”
Last week, J.D. Power and Associates announced an agreement to acquire the Used Car Guide from NADA. The company will keep the current brand name of the guide for now, before transitioning to its own brand.
Meanwhile, NADA Used Car Guide said demand for used vehicles remained strong. The depreciation in prices was in line with historical norms, Dixon told Auto Finance News. Subcompact and mid-size car prices fell by an average of 1.7% in April compared to March, while depreciation for mainstream and luxury pickups averaged at only 0.6%, according to the guide. General gravitation to crossover utilities and increasing fuel efficiency are some of the reasons that used trucks continue to perform well, according to Dixon.
Large pick-ups were the strongest performers, with prices up 7.2% year-over-year. Luxury mid-size and large cars were the weakest performing group. As mainstream vehicles become more luxurious, the competition intensifies in this segment, said Dixon.