|By PR Newswire||
|January 10, 2014 05:09 PM EST||
Prices up from a year ago, but growth will likely end in 2014
McLEAN, Va., Jan. 10, 2014 /PRNewswire-USNewswire/ -- Prices for used cars and light trucks have increased for five straight years, says the NADA Used Car Guide. December closed out 2013 with prices 0.4% higher than in 2012.
"A stronger economy, pent-up demand and favorable credit conditions underpinned used vehicle price strength in 2013," said Jonathan Banks, executive automotive analyst of the NADA Used Car Guide, in the December edition of Guidelines, a monthly report on new and used vehicle sales trends and price movement.
"These positive factors helped to balance downward price pressure caused by an increase in the supply of late-model used vehicles, which began to grow again in 2013 following a five year slide from a falloff in new vehicle sales and trade-ins during the recession," Banks added.
Used prices depreciated by 1% in December, a half point better than the 1.5% fall recorded in November.
NADA's seasonally adjusted used vehicle price index dropped to 124.7, eight-tenths of a percentage point lower than November's record high of 125.5. Despite the decline, December's figure stands as one of the highest reached on NADA's index, which measures the change in prices for used vehicles up to eight years in age.
Trade-in values for 2006 to 2013 model year units, according to the NADA Official Used Car Guide, were reduced by a cumulative average of 15.9% in 2013, a slight improvement from 16.1% in 2012.
A combination of lower supply and moderating gasoline prices helped keep overall light truck depreciation to just 13.5% last year, a figure better than the 17.6% rate of decline recorded for cars. Dropping by an average of nearly 21%, luxury car trade-in values declined the most of any segment last year; conversely, large SUV and pickup truck (midsize and full-size) values slipped by an average of 8.4%.
"Demand for both new and used full-size pickup trucks was extremely high last year," added Banks. "The segment is unique because it supports both consumer and commercial needs, and the fact that used full-size pickups lost about 8% of their value last year is clear evidence that America's love affair with the segment remains strong."
Price values for the voluminous compact and midsize car segments declined by an average of 17.2%, while values for the industry's biggest light truck segment based on new sales – midsize utilities – declined by an average of 15.7%.
NADA expects used vehicle prices in January 2014 to be flat or just down from December's levels before rising by 2.5% to 3% through March. By comparison, prices increased by 1.9% over the same period last year as demand was tempered by higher payroll taxes that went into effect at the start of 2013. Prices began 2014 at 18% higher than they were prior to the start of the recession in 2007.
While price movement is expected to be better than year-ago levels through the first quarter, expanding late-model supply should translate into more severe depreciation over the remainder of the year. As a result, used vehicle prices are expected to fall on an annual basis for the first time since 2008; however, economic growth, lower unemployment and a highly competitive credit environment are expected to minimize the negative influence of higher supply.
NADA's official forecast for 2014 will be released at the NADA Convention & Expo 2014 in New Orleans on Saturday, Jan. 25. Preliminary results indicate prices for used vehicles up to eight years in age will be down by 1% to 2% on an index basis by year's end.
Click here for the January edition of Guidelines.
About the NADA Used Car Guide
Since 1933, 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 and worldwide. NADA's editorial team collects and analyzes over one million combined automotive and truck wholesale and retail transactions per month. Its guidebooks, auction data, analysis, and data solutions offer automotive/truck, finance, insurance and government professionals the timely information and reliable solutions they need to make better business decisions. Visit nada.com/b2b to learn more.
NADA represents nearly 16,000 new-car and -truck dealerships with more than 32,000 domestic and international franchises. For more information, visit www.nada.org.
SOURCE National Automobile Dealers Association
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 30, 2016 09:15 AM EDT Reads: 1,641
On Dice.com, the number of job postings asking for skill in Amazon Web Services increased 76 percent between June 2015 and June 2016. Salesforce.com saw its own skill mentions increase 37 percent, while DevOps and Cloud rose 35 percent and 28 percent, respectively. Even as they expand their presence in the cloud, companies are also looking for tech professionals who can manage projects, crunch data, and figure out how to make systems run more autonomously. Mentions of ‘data science’ as a skill ...
Jul. 30, 2016 09:00 AM EDT Reads: 569
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
Jul. 30, 2016 09:00 AM EDT Reads: 580
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 30, 2016 08:30 AM EDT Reads: 1,015
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Jul. 30, 2016 08:00 AM EDT Reads: 736
UpGuard has become a member of the Center for Internet Security (CIS), and will continue to help businesses expand visibility into their cyber risk by providing hardening benchmarks to all customers. By incorporating these benchmarks, UpGuard's CSTAR solution builds on its lead in providing the most complete assessment of both internal and external cyber risk. CIS benchmarks are a widely accepted set of hardening guidelines that have been publicly available for years. Numerous solutions exist t...
Jul. 30, 2016 07:45 AM EDT Reads: 856
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Jul. 30, 2016 07:45 AM EDT Reads: 709
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
Jul. 30, 2016 07:45 AM EDT Reads: 2,396
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Jul. 30, 2016 07:30 AM EDT Reads: 1,680
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
Jul. 30, 2016 07:30 AM EDT Reads: 451
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, will provide economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session will also include a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Jul. 30, 2016 07:15 AM EDT Reads: 448
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Jul. 30, 2016 05:45 AM EDT Reads: 2,389
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 30, 2016 05:15 AM EDT Reads: 1,470
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jul. 30, 2016 05:15 AM EDT Reads: 2,710
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Jul. 30, 2016 04:45 AM EDT Reads: 1,474