The report points out that July prices of used mainstream cars fell at rates above the industry average for the period:
- Subcompact cars depreciated 3.9 percent; the largest segment drop in July.
- Mid-size and large cars depreciated an average of 2.9 percent. While the dip was larger than the industry average, it was typical for the period. Depreciation for both segments reached an average of 2.9 percent.
- Large car depreciation averaged 2.5 percent, but matched the segment's previous three year average for the period.
July did have some high points in the used car market, however. Large utility and large pickup prices showed exceptional strength and experienced only slight losses of 0.3 and 0.5 percent, respectively.
On the luxury side of the market, July losses were mixed across the board:
- Small luxury vehicles depreciated more than mid-size and large luxury vehicles.
- Luxury compact utility prices dropped by 3.1 percent.
- Luxury compact cars depreciated by 2.7 percent.
What Does the Future Hold?
NADA Used Car Guide forecasts prices of vehicles up to eight years in age to fall by 2.5 to 3 percent compared to July.
September and October depreciation is expected to fall around 3.2 to 3.7 percent, with full year price depreciation less than 5 percent on an index-basis from 2015.