The traditional spring tax-season market appeared to wane in April, as average wholesale prices rose only modestly on both a sequential and annual basis. As in previous months, drilling down into the data reveals softness due to supply growth that is not as evident in the top-line numbers, according to ADESA's monthly analysis.
"This year, we did start to see some strength in March, but I would say April's results appeared to wane relative to March," said ADESA's Tom Kontos, executive vice president of customer strategies and analytics.
Wholesale used vehicle prices in April averaged $10,881, which was up 0.8% compared to March and up 1.7% compared to April 2015, according to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class. The wholesale market remains bifurcated, however, with car prices down on both a month-over-month and year-over-year basis, while truck prices were up.
Average wholesale prices for used vehicles remarketed by manufacturers were down 2.8% month-over-month and down 5.4% year-over-year. Prices for fleet/lease consignors were down 0.9% sequentially and down 3.1% annually. Only dealer consignors saw increases in average prices, registering a 2.7% increase versus March and a 2.2% increase relative to April 2015.
Data from NADA showed a 6.7% year-over-year increase in retail used vehicle sales by franchised dealers and a 3.4% increase for independent dealers in April, and both were up significantly up month over month as sales rebounded from the Easter holiday impact in March. April CPO sales were down 4.6% month-over-month but were up 8.3% year-over-year, according to figures from Autodata.