For the third month in a row, average wholesale used vehicle prices fell significantly on a month-over-month basis, falling below $10,000 for the first time this year, according to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class¹.

"Supply growth continues to put downward pressure on prices despite strong demand driven by relatively high levels of retail used vehicle sales, especially for certified pre-owned (CPO) vehicles," according to Tom Kontos, EVP, customer strategies and analytics at ADESA.

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"Wholesale used vehicle prices in July averaged $9,878 – down 3.3 percent compared to June, although up 1.4 percent  relative to July 2014. Low fuel prices appear to be preferentially benefitting pickup truck values, which rose 2.2 percent month-over-month, while luxury car prices took a 9.6 percent month-over-month hit," Kontos continued.

Average wholesale prices for used vehicles remarketed by manufacturers were down 10.2 percent month-over-month and 14.7 percent year-over-year, as prices for off-rental program vehicles continue to be negatively affected by abundant supply. (The same goes for off-rental risk vehicles.) Prices for fleet/lease consignors were up a modest 0.3 percent sequentially and down 0.2-percent annually. Dealer consignors saw a 7.6-percent price decrease versus June and a 1.9-percent decrease relative to July 2014.

Data from NADA showed an 11.6 percent year-over-year increase in used vehicle sales by franchised dealers and a 15-percent increase for independent dealers in July. CPO sales were up 4.2 percent month-over-month and 11 percent year-over-year, according to figures from Autodata.

_{SOURCE: ADESA Analytical Services (June Data Revised)}

Kontos Kommentary - July 2015 Edition