Auction volume has declined slightly, despite peaking in the first quarter of 2016 from off-lease vehicle returns, according to analysts at Kelley Blue Book.
"Despite what we know about the increase in lease returns for the foreseeable future, it's interesting to note that Kelley Blue Book field analysts are seeing a decrease in auction inventory from last quarter," said Sean Foyil, analyst for Kelley Blue Book. "While year-over-year auction volume is up 11%, in the second quarter, we saw a 2% decrease in the number of vehicles running through auction lanes from the first quarter of 2016. With auction volume at an all-time high for 2016, it is unusual that the overall average decline in auction values matched last year's pace. Vehicle values decrease when the market is oversaturated, so this indicates that automakers and rental companies may not be sending all of their off-lease vehicles to auction in an effort to keep values stable."
Overall, auction values for used 1- to 3-year-old vehicles declined roughly $671 in the second quarter of 2016, as covered in the company's Blue Book Market Report.
Additionally, fuel prices continued along an upward trajectory in the second quarter, at a similar pace when compared to the same period in 2015, increasing 26 cents to $2.33 per gallon. As a result of relatively low fuel prices and seasonal trends, the sports car segment continued to outperform every other segment in the used-car market. In fact, nearly every vehicle within the segment outperformed the overall market average (down 4.9 %), with a year-to-date increase of 1.5%, according to Kelley Blue Book.