Year-Over-Year Wholesale Prices Fall

September 18, 2015
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Average wholesale used-vehicle prices fell on a year-over-year basis for the first time since August of 2014, as previously elevated sales of higher-priced, late-model off-rental program units have subsided and comparisons to prior year are now on more of an apples-to-apples basis in terms of seller-type composition, according to ADESA Analytical Services’ monthly analysis of "Wholesale Used Vehicle Prices by Vehicle Model Class."

KONTOS
KONTOS

"We now see a clearer picture of the downward pressure that supply growth is putting on prices.  Moreover, though retail used vehicle demand has been strong, average new car incentives have been climbing, which puts further downward pressure on used vehicle prices.  These impacts are most evident in car prices, as truck prices have held up well in the current low fuel price environment," said Tom Kontos, executive vice president and chief economist for ADESA Analytical Services. 

Wholesale used-vehicle prices in August averaged $9,575 – down 3.1 percent compared to July and down 0.2 percent relative to August 2014, according to ADESA. Car prices continue to bear the brunt of price declines, falling 5.8 percent month-over-month and 5.2 percent year-over-year, while truck prices fell only modestly (0.6 percent) on a sequential basis and actually went up significantly (9.8 percent) on a year-over-year basis.

Average wholesale prices for used vehicles remarketed by manufacturers were up 1.7 percent month-over-month, but down 9.1 percent year-over-year.  Prices for fleet/lease consignors were up a modest 0.7 percent sequentially, but down 2 percent annually.  Dealer consignors saw a 3.6-percent price decrease versus July, but a 2.1-percent increase relative to August 2014.

Additionally, data from NADA showed a 10.6 percent year-over-year increase in used vehicle sales by franchised dealers and a 12.4-percent increase for independent dealers in August. CPO sales were down 0.1 percent month-over-month and down 1.1 percent year-over-year, according to figures from Autodata.

Wholesale Used-Vehicle Price Trends

  Average Prices ($/Unit)     Latest Month Versus:  
  Aug-15 Jul-15 Aug-14 Prior Month Prior Year
           
Total All Vehicles $9,575 $9,876 $9,595 -3.1% -0.2%
           
Total Cars $8,010 $8,503 $8,450 -5.8% -5.2%
Compact Car $6,514 $7,105 $6,748 -8.3% -3.5%
Midsize Car $7,272 $7,628 $7,832 -4.7% -7.1%
Fullsize Car $6,238 $7,297 $5,786 -14.5% 7.8%
Luxury Car $11,425 $11,720 $11,857 -2.5% -3.6%
Sporty Car $11,750 $12,512 $12,325 -6.1% -4.7%
           
Total Trucks $11,276 $11,346 $10,270 -0.6% 9.8%
Mini Van $6,624 $6,839 $6,126 -3.1% 8.1%
Fullsize Van $12,813 $12,420 $11,499 3.2% 11.4%
Mini SUV $13,642 $13,560 $12,407 0.6% 10.0%
Midsize SUV $7,826 $7,968 $7,401 -1.8% 5.7%
Fullsize SUV $11,161 $11,090 $10,400 0.6% 7.3%
Luxury SUV $18,136 $17,769 $18,588 2.1% -2.4%
Compact Pickup $7,686 $7,938 $7,333 -3.2% 4.8%
Fullsize Pickup $14,593 $14,731 $12,857 -0.9% 13.5%
           
Total Crossovers $11,339 $11,569 $11,950 -2.0% -5.1%
Compact CUV $10,106 $10,428 $10,666 -3.1% -5.3%
Mid/Fullsize CUV $12,278 $12,447 $13,198 -1.4% -7.0%

Source: ADESA Analytical Services.  July data revised.

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