Kontos: Soft Wholesale Used-Vehicle Prices Continue

CARMEL, IN – The signs of softness in wholesale used-vehicle prices reported in April continued in May, reported Tom Kontos, chief economist, ADESA Inc. Average prices fell for the second consecutive month and were relatively flat on a year-over-year basis.

This price softness is predominately demand-driven as retail used-vehicle sales were down 3.5 percent on a year-over-year basis in May, and are down 3.2 percent year-to-date. High gasoline prices and other economic concerns are negatively affecting retail demand, although compact cars appear to be benefiting from consumer interest in more fuel-efficient vehicles, reported Kontos.