Larry Dixon, senior analyst for NADA Used Car Guide added, "While sales volume was up significantly on a month-over-month basis, volume was 4 percent lower than the same period last year."
The report observes the decline in supply was driven in part by a drop in late-model volume.
Bad Weather Affected the Automotive Market, Changed Market Forecast
Due to the effects of winter storm Jonas on the east coast, the report notes NADA Used Car Guide's forecast for the rest of the first quarter has been raised from the January edition of Guidelines. Used vehicle prices are now expected to rise by an average of approximately 1 percent in February and then by an additional 2 – 2.5 percent in March. The revision places prices 3 percent above December levels by the end of March, or roughly 1 percent more than last month's forecast.