Wholesale prices of vehicles up to eight years in age fell by 3.3% on a monthly basis in November. In addition to being a sharper drop than expected for the month, the decline is more than double the 1.4% average recorded during November for the past three years. The month-end result was the market’s third-worst performance in 2016. As a result, NADA Used Car Guide’s seasonally adjusted used vehicle price index fell by 0.3% to 116.3.
As for new vehicles, light vehicle sales in the U.S. grew by 3.7% this November, reaching 1.37 million units for the month. While this figure appears positive, the month’s increase in new deliveries can be largely credited to the two extra selling days in November 2016, compared to November 2015. When looking at the month’s daily selling rate (DSR), sales actually declined 4.6% compared to the same period last year. The seasonally adjusted annual rate (SAAR) reached 17.75 million, down from October’s 17.91 million (a monthly record for 2016). New vehicle sales stand at 15.78 million for the year to date, up a slight 0.1% from 2015’s 15.77 million total over the same period.
Finally, incentive spending has jumped by double digits. Automakers grew incentive spending in November, making it the 20th consecutive month of increased spending. On average, spending was up 21.2% on a prior-year basis for the month and reached an average of $3,741 per unit according to Autodata. Incentive spending for the year to date stands at an average of $3,303 per unit, up 13.6% versus the same period in 2015.
NADA Used Car Guide and its logo are registered trademarks of National Automobile Dealers Association, used under license by J.D. Power and Associates.