Used-Vehicle Prices Decline Three Months Straight

August 21, 2015
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For the third month in a row, average wholesale used vehicle prices fell significantly on a month-over-month basis, falling below $10,000 for the first time this year, according to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class1.

"Supply growth continues to put downward pressure on prices despite strong demand driven by relatively high levels of retail used vehicle sales, especially for certified pre-owned (CPO) vehicles," according to Tom Kontos, EVP, customer strategies and analytics at ADESA.

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"Wholesale used vehicle prices in July averaged $9,878 – down 3.3 percent compared to June, although up 1.4 percent  relative to July 2014. Low fuel prices appear to be preferentially benefitting pickup truck values, which rose 2.2 percent month-over-month, while luxury car prices took a 9.6 percent month-over-month hit," Kontos continued.

Average wholesale prices for used vehicles remarketed by manufacturers were down 10.2 percent month-over-month and 14.7 percent year-over-year, as prices for off-rental program vehicles continue to be negatively affected by abundant supply. (The same goes for off-rental risk vehicles.) Prices for fleet/lease consignors were up a modest 0.3 percent sequentially and down 0.2-percent annually. Dealer consignors saw a 7.6-percent price decrease versus June and a 1.9-percent decrease relative to July 2014.

Data from NADA showed an 11.6 percent year-over-year increase in used vehicle sales by franchised dealers and a 15-percent increase for independent dealers in July. CPO sales were up 4.2 percent month-over-month and 11 percent year-over-year, according to figures from Autodata.

  Average Prices ($/Unit)     Latest Month Versus:  
  Jul-15 Jun-15 Jul-14 Prior Month Prior Year
           
Total All Vehicles $9,878 $10,215 $9,743 -3.3% 1.4%
           
Total Cars $8,507 $8,883 $8,642 -4.2% -1.6%
Compact Car $7,107 $6,892 $6,708 3.1% 5.9%
Midsize Car $7,630 $7,806 $7,864 -2.3% -3.0%
Fullsize Car $7,306 $7,245 $6,854 0.9% 6.6%
Luxury Car $11,730 $12,982 $12,117 -9.6% -3.2%
Sporty Car $12,520 $13,581 $12,578 -7.8% -0.5%
           
Total Trucks $11,344 $11,536 $10,318 -1.7% 9.9%
Mini Van $6,842 $7,399 $6,375 -7.5% 7.3%
Fullsize Van $12,423 $12,870 $10,967 -3.5% 13.3%
Mini SUV $13,569 $13,655 $12,143 -0.6% 11.7%
Midsize SUV $7,972 $8,049 $7,376 -1.0% 8.1%
Fullsize SUV $11,091 $11,451 $10,221 -3.1% 8.5%
Luxury SUV $17,765 $19,731 $19,295 -10.0% -7.9%
Compact Pickup $7,916 $8,162 $7,445 -3.0% 6.3%
Fullsize Pickup $14,745 $14,433 $12,966 2.2% 13.7%
           
Total Crossovers $11,577 $11,998 $12,154 -3.5% -4.7%
Compact CUV $10,431 $10,609 $10,924 -1.7% -4.5%
Mid/Fullsize CUV $12,458 $13,031 $13,409 -4.4% -7.1%

SOURCE: ADESA Analytical Services (June Data Revised)

Kontos Kommentary - July 2015 Edition

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