J.D. Power Valuation Services’ September 2019 Used Car and Light Truck Guidelines report finds the pre-owned market continues to perform well for auto dealers, registering a 2% increase in average prices from January to August compared with the same period a year ago.
The research and data firm’s Seasonally Adjusted Used Vehicle Price Index registered at 123.6, a 0.7% increase from July.
“At an industry level, used vehicle prices are expected to remain relatively strong moving forward,” said David Paris, executive analyst at J.D. Power Valuation Services. “From where prices are currently through the remainder of the year, we are expecting a mild decline, which, barring any serious weather impact or economic changes, should hold true.
“Used supply will be mixed — positive for cars, negative for SUVs and trucks. The impact of other factors, including gas prices, home prices, and labor conditions are is expected to be neutral-to-supportive of used prices,” Paris added.
The report also charts a 0.4% month-over-month decline in wholesale prices. On the new-vehicle side, per-unit factory incentives increased to $4,154 per unit, a 7.1% year-over-year increase, and incentive spending as a percent of MSRP grew to 10.5%. But a combination of segment mix and higher prices drove the average new-vehicle transaction to just over $33,000, a 4.5% increase over August 2018.
This story originally appeared on F&I and Showroom, another Bobit Business Media publication.