The average wholesale used-vehicle price in June was $10,55, a 1.5% decrease from May but a 3.3% increase from a year ago, according to ADESA Analytical Services. The firm attributed the month-over-month decline to the typical falloff in prices from May to June, and the year-over-year increase to the continued price strength of trucks.
Car model classes again took the bigger month-over-month hit, with the average price falling 4.3% from May and 3.8% from a year ago to $8,566. The average truck price, however, fell only 0.8% from May and increased 7.7% from a year ago to $12,573.
“A portion of the month-over-month price decline can be explained by the usual falloff in prices from May to June, typifying the transition from the strong spring/tax season to the less robust summer months,” noted Tom Kontos, the firm’s chief economist. “However, incentive activity, which has been relatively benign, may be on the rise, as manufacturers look to boost waning new-vehicle sales — a pattern that bears watching."
“In the meantime, retail used-vehicle sales were strong in June, which once again provided demand-side support of wholesale values receiving downward pressure from supply growth,” Kontos added.
June sales data from the National Automobile Dealers Association showed a 5.3% year-over-year increase in retail used-vehicle sales by franchised dealers and a 9.1% increase in sales by independent dealers. Both segments showed significant month-over-month increases as well.
Additionally, June certified pre-owned sales were up 0.8% on a month-over-month basis and 5% on a year-over-year basis, according to Autodata Corp.
According to ADESA, average wholesale prices for used vehicles remarketed by manufacturers were up 5.7% on a month-over-month basis and up 2% on a year-over-year basis. Prices for fleet/lease consignors were down 1.1% from May but up 0.7% from a year ago. Dealer consignors registered a 1.1% decrease from May but a 3.6% increase from a year ago.
In the car model classes, the full-size car posted the largest month-over-month and year-over-year decreases at 6.5% and 6%, respectively. The luxury car segment registered the lowest month-over-month decrease in average wholesale price at 4.7%, while midsize car segment posted the lowest year-over-year decrease of 0.4%.
In the truck category, the full-size truck posted the largest year-over-year and month-over-month increase of 15.9% and 1%, respectively, while the full-size van showed the largest year-over-year and month-over-month decline of 4.1% and 6.6%, respectively.
Editor's note: This story originally appeared on F&I Showroom, which is a Bobit Business Media publication.