Wholesale prices strengthened in March above both seasonal and year-ago levels, according to Tom Kontos, executive vice president of ADESA Analytical Services. Off-rental units, which were in greater abundance in March 2013, were a driving factor in this March’s results. 

"Delayed off-rental supply translated into higher off-rental prices, which in turn contributed to higher overall average wholesale used vehicle prices," Kontos said. "Additionally, retail used-vehicle sales rebounded strongly in March, after being depressed by severe weather in January and February. The resulting strong demand also contributed to higher overall prices."

To the extent off-rental volume was hindered by winter conditions and a late Easter, this volume should be forthcoming soon and, along with expected off-lease volume growth, will put downward pressure on prices as seen in previous months, according to Kontos. 

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class¹, wholesale used-vehicle prices in March averaged $10,429 - up 6 percent compared to February, and up 4 percent relative to March 2013. All segments except minivans registered month-over-moth increases. Pickups and SUVs experienced particularly strong year-over-year price increases.

Prices for used vehicles remarketed by manufacturers were up 3.9 percent month-over-month and up 8.2 percent year-over-year, as manufacturers capitalized on strong demand for certifiable units and lower supply of off-rental program cars. Prices for fleet/lease consignors were up 8.8 percent sequentially and up 4.5 percent annually - in part, due to tight supplies and strong demand for off-rental risk units. Dealer consignors saw a 7.5-percent average price increase versus February, and a 4.5-percent uptick vs. March 2013, indicating solid wholesale absorption of high trade-in volume from strong March new vehicle sales.

Based on data from CNW Marketing/Research, retail used-vehicle sales were up almost 50 percent month-over-month, as severe weather conditions eased. Sales of certified pre-owned (CPO) vehicles in March were up 15.3 percent from the prior month and up 8.6 percent from the prior year, based on figures from Autodata.

Wholesale Used Vehicle Price Trends Average Prices ($/Unit) Latest Month Versus: Mar-14 Feb-14 Mar-13 Prior Month Prior Year Total All Vehicles $10,429 $9,839 $10,028 6.0% 4.0% Total Cars $9,337 $8,776 $9,189 6.4% 1.6% Compact Car $7,410 $7,130 $7,065 3.9% 4.9% Midsize Car $8,519 $8,140 $8,520 4.7% 0.0% Fullsize Car $7,554 $6,889 $7,883 9.7% -4.2% Luxury Car $12,422 $11,999 $12,057 3.5% 3.0% Sporty Car $13,247 $12,002 $13,053 10.4% 1.5% Total Trucks $10,843 $10,239 $9,753 5.9% 11.2% Mini Van $7,486 $7,609 $6,929 -1.6% 8.0% Fullsize Van $10,927 $10,907 $9,982 0.2% 9.5% Mini SUV $12,746 $11,988 $11,227 6.3% 13.5% Midsize SUV $7,995 $7,324 $6,911 9.2% 15.7% Fullsize SUV $11,320 $10,652 $10,647 6.3% 6.3% Luxury SUV $19,788 $18,210 $18,144 8.7% 9.1% Compact Pickup $7,558 $7,260 $7,550 4.1% 0.1% Fullsize Pickup $13,274 $12,460 $11,790 6.5% 12.6% Total Crossovers $13,300 $12,615 $13,572 5.4% -2.0% Compact CUV $12,200 $11,480 $12,098 6.3% 0.8% Mid/Fullsize CUV $14,473 $13,791 $15,084 4.9% -4.1% Source: ADESA Analytical Services.