October average wholesale prices partially reversed declines seen in previous months, registering an increase versus September, according to ADESA.  Prices remained down on a year-over-year basis, but even this decline masks underlying strength, in that this October’s results are being measured against tough comparables from last October’s temporary price strength stemming from Superstorm Sandy.

Nevertheless, some of October’s increase in average prices is the result of proportionately more high-priced program units remarketed by manufacturers and therefore shouldn’t be overplayed.  The overriding dynamic will remain that wholesale used vehicle prices continue to receive downward pressure from returning supplies of off-lease units and other sources of used car volume growth resulting from stronger new vehicle sales.

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class¹, wholesale used vehicle prices in October averaged $9,590, – up 1.2 percent compared to September, but down 1.8 percent, relative to October 2012. The month-over-month uptick runs contrary to typical seasonal declines seen in October relative to September and is remarkable in the face of growing used vehicle supplies. Trucks seemed to benefit in particular from this respite in price softening.

Still, prices for used vehicles remarketed by manufacturers were down 5.3 percent month-over-month, although up 2.1 percent year-over-year.  Prices for fleet/lease consignors were also down 2.7 percent sequentially but up 1.5 percent annually.  Dealer consignors actually saw a 1.0 percent average price increase versus September 2013, but a 3.3 percent downturn versus October 2012.

Based on data from CNW Marketing/Research, retail used-vehicle sales were down 10.8 percent month-over-month but up 1.6 percent on a year-over year basis in October. Sales of certified pre-owned (CPO) vehicles were up 13.1 percent from the prior month and 20.6 percent from the prior year, based on figures from Autodata.

Wholesale Used Vehicle Price Trends Average Prices ($/Unit) Latest Month Versus: Oct-13 Sep-13 Oct-12 Prior Month Prior Year Total All Vehicles $9,590 $9,477 $9,764 1.2% -1.8% Total Cars $8,455 $8,433 $8,822 0.3% -4.2% Compact Car $6,695 $6,768 $7,083 -1.1% -5.5% Midsize Car $7,735 $7,763 $7,913 -0.4% -2.3% Fullsize Car $7,049 $6,653 $8,380 6.0% -15.9% Luxury Car $11,597 $11,562 $11,950 0.3% -3.0% Sporty Car $12,102 $12,160 $12,269 -0.5% -1.4% Total Trucks $9,963 $9,727 $9,783 2.4% 1.8% Mini Van $6,920 $6,611 $6,978 4.7% -0.8% Fullsize Van $9,969 $10,632 $9,947 -6.2% 0.2% Mini SUV $11,380 $11,151 $10,809 2.1% 5.3% Midsize SUV $7,013 $6,931 $6,850 1.2% 2.4% Fullsize SUV $11,217 $10,455 $11,729 7.3% -4.4% Luxury SUV $18,781 $18,785 $19,014 0.0% -1.2% Compact Pickup $7,105 $7,009 $7,272 1.4% -2.3% Fullsize Pickup $11,927 $11,864 $11,362 0.5% 5.0% Total Crossovers $12,573 $12,536 $13,084 0.3% -3.9% Compact CUV $11,161 $11,220 $10,893 -0.5% 2.5% Mid/Fullsize CUV $14,031 $13,879 $15,592 1.1% -10.0% Source: ADESA Analytical Services. September data revised.