CARMEL, IN – The lack of program vehicle supply continued to bias wholesale used-vehicle prices upward on a year-over-year basis in July, despite weak retail demand, according to Tom Kontos, ADESA’s chief economist, according to www.adesa.com.
The Kontos Kommentary column reported that weak comparables, especially for the truck classes (which were struggling with a run-up in gasoline prices last July), exaggerated the appearance of strength in the July results versus year-ago price levels. However, prices fell overall and for every model class versus prior month. The negative month-over-month results better reflect weak conditions in retail used-vehicle unit sales than do the year-over-year comparisons.
Performance will vary based on sale type as well. For example, prices in the dealer consignment and fleet/lease lanes at auction fell, respectively, by 2.2 percent and 0.7percent in July compared to June, while prices in factory sales rose 2.0 percent%. As off-rental volumes increase in late-summer/early-fall, downward pressure on prices will increase, Kontos reported.
Wholesale used vehicle prices in July averaged $9,804 compared to $10,055 in June (down 2.5 percent) and $9,579 in July 2006 (up 2.3 percent), according to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class. On average, truck prices were up 3.7 percent year-over-year, while car prices were up by only 0.1 percent.
According to data from CNW Marketing/Research, July retail used-vehicle unit sales were down 2.4 percent year-over-year for franchised dealers, 7.0 percent for independent dealers, and 4.7 percent overall.