According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class¹, wholesale used vehicle prices in June averaged $9,516 – down 2.9 percent compared to May and 3.7 percent relative to June 2012. At the half-year mark, wholesale prices are down 3.1 percent year-over-year, consistent with my expectations that prices will soften modestly this year based on anticipated supply growth of approximately five percent.  The softening price environment in June impacted virtually all car, truck and crossover segments.

Prices for used vehicles remarketed by manufacturers were up 5.7 percent month-over-month, but were down 0.9 percent year-over-year and were based on limited volume.  Prices for fleet/lease consignors were down 2.9 percent sequentially, but up 1.8 percent annually. Dealer consignors saw a 1.6-percent average price decrease versus May 2013, and a 5.2-percent downturn versus June 2012.

Based on data from CNW Marketing/Research, retail used vehicle sales were up 3.4 percent year-over-year for franchised dealers and 3.8 percent for independent dealers in June, and both dealer types saw month-over-month increases of around 12 percent. Sales of certified pre-owned (CPO) vehicles were down modestly at 0.8 percent month-over-month but up significantly at 14.4 percent year-over-year based on figures from Autodata.

Wholesale Used Vehicle Price TrendsAverage Prices ($/Unit)Latest Month Versus:Jun-13May-13Jun-12Prior MonthPrior YearTotal All Vehicles$9,516$9,796$9,885-2.9%-3.7% Total Cars $8,613 $8,932 $8,999 -3.6% -4.3% Compact Car $6,765 $7,087 $7,199 -4.5% -6.0% Midsize Car $7,902 $8,192 $8,046 -3.5% -1.8% Fullsize Car $7,056 $7,240 $7,151 -2.5% -1.3% Luxury Car $11,770 $12,212 $12,754 -3.6% -7.7% Sporty Car $12,536 $12,849 $12,848 -2.4% -2.4% Total Trucks $9,563 $9,761 $9,810 -2.0% -2.5% Mini Van $6,376 $6,560 $7,000 -2.8% -8.9% Fullsize Van $9,739 $9,875 $9,534 -1.4% 2.1% Mini SUV $11,423 $11,053 $10,994 3.3% 3.9% Midsize SUV $6,552 $7,164 $6,955 -8.5% -5.8% Fullsize SUV $10,811 $10,580 $12,344 2.2% -12.4% Luxury SUV $18,347 $18,745 $19,160 -2.1% -4.2% Compact Pickup $7,238 $7,441 $7,570 -2.7% -4.4% Fullsize Pickup $11,807 $11,874 $11,214 -0.6% 5.3% Total Crossovers $12,582 $12,933 $13,206 -2.7% -4.7% Compact CUV $11,292 $11,464 $11,109 -1.5% 1.6% Mid/Fullsize CUV $13,948 $14,479 $16,276 -3.7% -14.3% Source: ADESA Analytical Services. May data revised.

¹The analysis is based on nearly six million annual sales transactions from over 150 of the largest U.S. wholesale auto auctions, including those of ADESA as well as other auction companies. ADESA Analytical Services segregates these transactions to study trends by vehicle model class.

The views and analysis provided herein relate to the vehicle remarketing industry as a whole and may not relate directly to KAR Auction Services, Inc. The views and analysis are not the views of KAR Auction Services, its management or its subsidiaries; and their accuracy is not warranted. The statements contained in this report and statements that the company may make orally in connection with this report that are not historical facts are forward-looking statements. Words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “bode”, “promises”, “likely to” and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the company’s Securities and Exchange Commission filings. The company does not undertake any obligation to update any forward-looking statements.