Dealers purchased a lower percentage of vehicles offered for sale by other dealers at ADESA auctions when compared to last October, according to the ADESA Auction Dealer Optimism Index. The 0.6 percent decline is significant because it is in comparison to the already depressed dealer consignment conversion rates registered last October, after 9/11. Virtually all wholesale market segments noted soft average prices in October, specifically average prices for dealer consignment units sold at auction.
The ADESA Index shows a correlation with auction price trends. In the late '90s (1997-1999), the Index turned positive and auction prices recovered after a period of softening in mid-1996. However, prices declined again after the Index’s negative turn throughout most of 2000, which continued through October 2001. The Index saw a positive change and prices began to recover into the spring of 2002.