First Time Wholesale Prices Down Year-Over-Year Since January

Wholesale used-vehicle prices in August averaged $9,592 -- down 1.6 percent compared to July, and down 0.4 percent relative to August 2013.

by Staff

September 12, 2014

First Time Wholesale Prices Down Year-Over-Year Since January — KONTOS

3 min to read

The softening trend in wholesale prices continued in August, and for the first time since January, prices were down on a year-over-year basis, according to ADESA's recent Kontos Kommentary.

"This should come as no surprise, as this has been an outcome we have anticipated for quite some time based primarily on our predicted growth in off-lease volume," according to Tom Kontos, executive vice president at ADESA Analytical Services. "Retail used-vehicle sales, especially for certified pre-owned units, have actually been providing a demand-side extension to the strong sellers market that consignors have generally enjoyed since late 2009. But, with the focus on new vehicle sales in the current retail automotive market, those used vehicle sales have had a temporary lull (although not for CPO units)."

Given an improving economy and employment growth, retail used-vehicle sales should resume full bore in coming months, especially considering the high trade-in volume the strong new-vehicle sales are generating, Kontos noted. Nevertheless, used-vehicle prices should continue to trend down as supply outpaces demand.

Wholesale Price Data by Model Class Segment

	Average Prices ($/Unit)			Latest Month Versus:
	Aug-14	Jul-14	Aug-13	Prior Month	Prior Year

Total All Vehicles	$9,592	$9,743	$9,635	-1.6%	-0.4%

Total Cars	$8,442	$8,642	$8,720	-2.3%	-3.2%
Compact Car	$6,749	$6,708	$6,922	0.6%	-2.5%
Midsize Car	$7,833	$7,864	$7,976	-0.4%	-1.8%
Fullsize Car	$5,784	$6,854	$6,879	-15.6%	-15.9%
Luxury Car	$11,805	$12,117	$11,960	-2.6%	-1.3%
Sporty Car	$12,312	$12,578	$12,758	-2.1%	-3.5%

Total Trucks	$10,272	$10,318	$9,624	-0.4%	6.7%
Mini Van	$6,128	$6,375	$6,127	-3.9%	0.0%
Fullsize Van	$11,544	$10,967	$9,959	5.3%	15.9%
Mini SUV	$12,422	$12,143	$11,323	2.3%	9.7%
Midsize SUV	$7,415	$7,376	$7,024	0.5%	5.6%
Fullsize SUV	$10,387	$10,221	$10,095	1.6%	2.9%
Luxury SUV	$18,528	$19,295	$18,705	-4.0%	-0.9%
Compact Pickup	$7,330	$7,445	$7,053	-1.5%	3.9%
Fullsize Pickup	$12,874	$12,966	$11,992	-0.7%	7.4%

Total Crossovers	$11,954	$12,154	$12,752	-1.6%	-6.3%
Compact CUV	$10,671	$10,924	$11,486	-2.3%	-7.1%
Mid/Fullsize CUV	$13,202	$13,409	$14,063	-1.5%	-6.1%
Source: ADESA Analytical Services.

According to ADESA Analytical Services’ monthly analysis of "Wholesale Used Vehicle Prices by Vehicle Model Class¹," wholesale used-vehicle prices in August averaged $9,592 -- down 1.6 percent compared to July, and down 0.4 percent relative to August 2013. Prices for compact cars; full-size vans; and mini, mid-size, and large SUVs were up on a month-over-month basis, while all other segments were down.

Prices for used vehicles remarketed by manufacturers were down 1 percent month-over-month and down 4.3 percent year-over-year, indicating weaker demand for high off-rental program vehicle inventories. Prices for fleet/lease consignors were down 2.4 percent sequentially and down 1.5 percent annually. Prices for off-rental “risk” units within this segment were again down significantly. Dealer consignors saw a 2.2 percent average price decrease versus July, and were also down 2.2 percent relative to August 2013.