Here’s Why the Used Car Market Tanked Last Month
MCLEAN, Va., March 21, 2017 /PRNewswire/ — February 2017 will go down in U.S. used vehicle market history as an underperforming month analysts didn’t see coming. So, why were prices surprisingly down last month, when normally during the second month each year they start to bounce back?
There were a variety of factors for February’s drop in used vehicle prices. According to market intelligence analysts at J.D. Power’s Valuation Services division:
- Manufacturers dialed up incentive spending 18 percent to help reduce new vehicle inventory levels that are at a decade-plus high.
- Late-model auction sales volume continued to move higher, rising by 6 percent versus January.
- Federal tax refunds haven’t been distributed quickly compared to past years, which has given buyers the money they need to make their big-ticket used vehicle purchase. This is HUGE.
To learn more about the why’s and how’s of the used vehicle market, download the latest Guidelines report from J.D. Power’s Valuation Services team.
About J.D. Power Valuation Services
J.D. Power Valuation Services (formerly known as NADA Used Car Guide®) has earned its reputation as the leading provider of vehicle valuation products, services and information to businesses throughout the United States. Its editorial team collects and analyzes over 1 million combined automotive and truck wholesale and retail transactions per month. NADA Used Car Guide® and its logo are registered trademarks of the National Automobile Dealers Association, used under license by J.D. Power.
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SOURCE J.D. Power