monthly Guidelines reported that used vehicle depreciation slowed down substantially in November as wholesale prices for vehicles up to eight years old fell by 1.5% from the October. That took place after diving 3.5% in October.
Other highlights from the latest market report include:
• NADA’s seasonally adjusted used vehicle price index finished the month at 125.6 in November, up 1.8 points from October’s figure of 123.8. This is the highest point reached on NADA’s index, surpassing the previous high of 125.0 set back in December 2012.
• A portion of the month’s strength can likely be traced back to the end of the federal government shutdown in October.
• Given the rebound in consumer confidence that occurred since the end of the political impasse, it’s possible that an increase in pent-up demand accumulated as a result of the federal shutdown brought additional support to used prices in November.