Used car prices decline as shortage of late model vehicles eases

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Joseph C. Cassini drives his 1934 Packard 1108 Twelve Dietrich Convertible Victoria onto the winners platform after being awarded the Best of Show award at the Pebble Beach Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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Ben Rehm, 20, of Carmel photographs a 1927 Rolls-Royce Phantom I Murphy Convertible Saloon at the Concours d’Elegance on Sunday. (Bob Chamberlin / Los Angeles Times)

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Mitzy from Salinas takes a moment to rest in the shade of a 1955 Lincoln Indianapolis Boano coupe. (Bob Chamberlin / Los Angeles Times)

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A Duesenberg with a tool kit mounted inside the driver’s door is displayed at the Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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Photographer Phillippe Carre takes a picture of a vintage Alfa Romeo. (Bob Chamberlin / Los Angeles Times)

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Julia Binke, 6, walks in front of a 1925 Rolls-Royce Silver Ghost at the Concours d’Elegance on Sunday. (Bob Chamberlin / Los Angeles Times)

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Sporting racing-flag toenail polish, Lori TenEyck of Colorado was one of nearly 10,000 people enjoying the display of about 200 collector cars at the Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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One of the nearly 200 collector cars greets the dawn as it rolls onto the 18th fairway at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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Chewing on his cigar, Rick Rawlins drives a 1908 Prince Henry Benz, owned by Ann Bothwell but originally owned by race car driver Barney Oldfield, as nearly 200 collector cars greet the dawn as they roll onto the 18th fairway at Pebble Beach to begin the Pebble Beach Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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Spectators line up to see the nearly 200 collector cars at the Pebble Beach Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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A rumble-seat passenger in a 1933 V-12 Packard at the Pebble Beach Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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Wearing a variety of hats, contestants ride in their Rolls Royce. (Bob Chamberlin / Los Angeles Times)

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Adele Tanaka, left, and Jo Yuan capture the moment as the first of nearly 200 collector cars greets the day to begin the Pebble Beach Concours d’Elegance. (Bob Chamberlin / Los Angeles Times)

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A 1957 Ferrari 250 GT 14-Louver Berlinetta is on display at the Gooding & Co. auction as part of the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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A prospective buyer looks down a line of cars up for auction at the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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A Shelby 289 Cobra Competition Roadster from 1964 is reflected in the fender skirt of a 1937 Bugatti Type 57SC Atalante at the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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At the Concours d’Elegance weekend at Pebble Beach, a 1925 Bugatti Type 35 Grand Prix is on display. (Bob Chamberlin / Los Angeles Times)

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A 1935 Avions Voisin C25 Aerodyne, featuring an early version of a sun roof, is on display at the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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Sports Car magazine photographer Dave Tomaro photographs prospective buyers as they spend the afternoon ogling vintage and rare automobiles on display at the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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A Bentley radiator ornament at the Gooding & Company auction tent at the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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A man uses a camera to get a closer look at the undercarriage of a 1956 Porsche 356 A 1500 GS Carrera Coupe. (Bob Chamberlin / Los Angeles Times)

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Expensive cars are lined up at the Concours d’Elegance weekend at Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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A racing rim signed by Carroll Shelby, the father of the Cobra, in Lynn Park’s garage. (Bob Chamberlin / Los Angeles Times)

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“If one’s good, two’s got to be better,” Park said of the cars, chuckling. (Bob Chamberlin / Los Angeles Times)

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Park stands beside the second Cobra he ever bought. One of his sons is going to race in it. (Bob Chamberlin / Los Angeles Times)

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Park checks the hoses of a Cobra he will take to Pebble Beach. This particular car is worth about $2 million. (Bob Chamberlin / Los Angeles Times)

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Park opens the garage door in front of one of the Cobras he plans to take to Pebble Beach. (Bob Chamberlin / Los Angeles Times)

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Lynn Park with his garage full of Cobra cars. Known in classic car circles as Mr. Cobra, Park has been collecting the marque since he bought his first after getting out of the Army in 1969. The first purchase got him hooked. (Bob Chamberlin / Los Angeles Times)

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Lynn Park keeps his Cobras in his garage in La Cañada Flintridge. He and his sons plan to race race three of them at the Pebble Beach, Calif., event. (Bob Chamberlin / Los Angeles Times)

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“You can’t have any more fun than playing with old cars,” Park said of vintage racing. (Brian van der Brug / Los Angeles Times)

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Lynn Park drives one of his vintage Shelby Cobras around his neighborhood in La Cañada Flintridge. (Brian van der Brug / Los Angeles Times)

By Jerry Hirsch

June 13, 2013 9:38 AM PT

The price of used cars posted its biggest drop since October, according to an industry guide, an indication the tight market for late-model-year vehicles is starting to ease.

The NADA Used Car Guide said prices for cars and trucks up to 8 years old declined 2.1% in May.

“While prices this year have held up well, a growing supply of 3-year-old vehicles is applying downward pressure on prices for late-model used vehicles,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide.

A better supply of late-model used cars results from a rebound in the new auto sales since the low in 2009. More people are buying new vehicles, trading in their used cars and more cars are coming off lease or are being sold by the car rental companies.

Some types of vehicles are in better supply and have prices that are declining faster than others.

For example, NADA estimated the late-model supply of midsize cars and compact and luxury utility vehicles has increased on average by 16% in May compared to a year earlier while the late-model supply for the overall market has increased by 8%.

Overall market prices have declined by 1.9% over the same five-month period, while prices for full-size pickup trucks are up nearly 1%. Prices of used luxury cars and utility vehicles have fallen the most this year, down 3.3% on average.

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