Strong retail demand continued to buoy wholesale used vehicle prices in November, as average prices rose on both a month-over-month and year-over-year basis, according to ADESA.
As noted in last month’s results, however, some of the increase is due to a shift in the mix of vehicles being sold at auction towards younger off-rental and off-lease units as opposed to older dealer consigned vehicles. Still, the price buoyancy is encouraging to consignors, who have been bracing themselves for price softening in light of increasing vehicle supply, and to dealer buyers, who are profitably retailing these units.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class1, wholesale used-vehicle prices in November averaged $9,750, – up 1.7 percent compared to October, and up 2.1 percent relative to November 2012. Minivan prices were particularly strong, reflecting an influx of well-equipped, good-condition, late-model units from rental and commercial defleeting.
Prices for used vehicles remarketed by manufacturers were up 3.6 percent month-over-month and up 3 percent year-over-year. Prices for fleet/lease consignors were up 0.4 percent sequentially and up 5.1 percent annually. Dealer consignors saw a 0.8 percent average price increase versus October 2013, but a 0.8-percent downturn versus November 2012.
Based on data from CNW Marketing/Research, retail used-vehicle sales were down 1 percent month-over-month but up 7.6 percent on a year-over year basis in November. Similarly, sales of certified pre-owned (CPO) vehicles were down 0.7 percent from the prior month but up 19.3 percent from the prior year, based on figures from Autodata.
|Wholesale Used Vehicle Price Trends|
|Average Prices ($/Unit)||Latest Month Versus:|
|Nov-13||Oct-13||Nov-12||Prior Month||Prior Year|
|Total All Vehicles||$9,750||$9,590||$9,554||1.7%||2.1%|
|Source: ADESA Analytical Services.|
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.