Used Car Prices Decline in May after Strong Spring

According to data from Black Book, five used car segments have resumed their price declines after a strong spring buying season, which is typically strong when shoppers purchase used vehicles with tax rebate money. Since the start of May, though, certain segments have made a significant reversal, which should continue over the next several months.

Entry mid-size car prices have declined 2.07% so far in May after prices stayed flat in April (-0.06%). Vehicles in this segment include the Chrysler 200, Ford Fusion, Volkswagen Jetta, Chevrolet Malibu, Buick Regal and Chrysler Sebring.

Entry-level cars have seen a 1.66% decline so far in May, following a 0.71% increase in prices during April. Vehicles in this segment include the Hyundai Accent, Chevrolet Aveo, Honda Fit, Kia Rio, Nissan Versa and Toyota Yaris.

Compact cars have dropped 1.05% this month after posting a 0.55% increase during April. Vehicles in this segment include the Honda Civic, Chevrolet Cobalt, Toyota Corolla, Chevrolet Cruze, Ford Fiesta, Ford Focus and Toyota Matrix.

“Several of the car segments have seen a noticeable drop in prices following the spring buying season due to a variety of factors that are economy- and demand-driven,” said Ricky Beggs, managing editor of Black Book. “With the buying season over, shoppers have turned to service vehicles like trucks, which are in demand from economy-driven construction projects.”

Here are the top five segments that have dropped the most in May compared with April prices:

   
Segment May April
Entry Mid-Size Car -2.07% -0.06%
Full-Size Car -1.70% -0.28%
Entry-Level Car -1.66% 0.71%
Upper Mid-Size Car -1.22% 0.03%
Compact Car -1.05% 0.55%

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.