Wholesale Prices Soften for Fifth Consecutive Month

Wholesale used-vehicle prices in September averaged $9,557 -- down 0.4 percent compared to August.

by Staff

October 17, 2014

Wholesale Prices Soften for Fifth Consecutive Month — KONTOS

3 min to read

Wholesale used-vehicle prices softened again in September, their fifth monthly decrease in a row, according to According to ADESA Analytical Services' monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class. September's modest year-over-year increase in average prices reflects a higher percentage of institutional sales of late-model vehicles this year vs. last, and masks the softness in prices seen by looking at those sales on a disaggregated basis. Improved retail sales of used vehicles after a tough summer cushioned the blow to wholesale prices from growing supply.

"Wholesale used-vehicle prices in September averaged $9,557 - down 0.4 percent compared to August, but up 0.8 percent relative to September 2013. Average prices for minivans were up significantly, but this reflects an increase in the percentage of current and one-year-old models sold in factory sales in September," according to Tom Kontos, executive vice president & chief economist at ADESA. "Trucks and cars moved in opposite directions, with prices for trucks rising significantly on a month-over-month and year-over-year basis, while cars showed major sequential and annual price declines. Crossovers also showed price declines."

According to the analysis, prices for used vehicles remarketed by manufacturers were down 4.2 percent month-over-month and down 3.3 percent year-over-year, as manufacturers sold off elevated program vehicle inventories. Prices for fleet/lease consignors were down 2 percent sequentially and down 1.1 percent annually. Prices for off-rental “risk” units within this segment were again down significantly. Dealer consignors saw a 1.9 percent average price decrease versus August, although prices were up a modest 0.3% relative to September 2013.

Retail used vehicle sales in September were up 4.1 percent month-over-month and up 4.6 percent year-over-year, based on data from CNW Marketing/Research. According to Autodata, sales of certified pre-owned (CPO) vehicles were down 15.4 percent vs. August, but that was based on three fewer selling days. A better reflection of certified used vehicle demand is that September CPO sales were up 19.7 percent from the prior year.

WHOLESALE USED-VEHICLE PRICE TRENDS

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

Total All Vehicles	$9,557	$9,595	$9,477	-0.4%	0.8%

Total Cars	$8,325	$8,450	$8,433	-1.5%	-1.3%
Compact Car	$6,682	$6,748	$6,768	-1.0%	-1.3%
Midsize Car	$7,636	$7,832	$7,763	-2.5%	-1.6%
Fullsize Car	$6,516	$5,786	$6,653	12.6%	-2.1%
Luxury Car	$11,652	$11,857	$11,562	-1.7%	0.8%
Sporty Car	$12,003	$12,325	$12,160	-2.6%	-1.3%

Total Trucks	$10,406	$10,270	$9,727	1.3%	7.0%
Mini Van	$7,082	$6,126	$6,611	15.6%	7.1%
Fullsize Van	$11,496	$11,499	$10,632	0.0%	8.1%
Mini SUV	$12,269	$12,407	$11,151	-1.1%	10.0%
Midsize SUV	$7,414	$7,401	$6,931	0.2%	7.0%
Fullsize SUV	$10,541	$10,400	$10,455	1.3%	0.8%
Luxury SUV	$18,442	$18,588	$18,785	-0.8%	-1.8%
Compact Pickup	$7,249	$7,333	$7,009	-1.2%	3.4%
Fullsize Pickup	$12,933	$12,857	$11,864	0.6%	9.0%

Total Crossovers	$11,941	$11,950	$12,536	-0.1%	-4.7%
Compact CUV	$10,504	$10,666	$11,220	-1.5%	-6.4%
Mid/Fullsize CUV	$13,290	$13,198	$13,879	0.7%	-4.2%