CARMEL, IN - Wholesale used-vehicle prices remained soft in December, reflecting ongoing weakness in retail sales, according to Tom Kontos, ADESA chief economist. As in November, prices were down on a year-over-year basis, and the drop worsened from -0.4-1.9 percent.

ADESA Analytical Services expects prices to remain relatively soft due to still-low retail demand against growing volumes of fleet, rental, and eventually, off-lease vehicles, along with steady flows of repo and dealer consignment units. Continued dealer discounting, broader economic strength, and ample tax refunds will be needed to generate stronger used-vehicle sales and allow prices to firm, reported Kontos.