Adesa: Wholesale Market to Strengthen

Wholesale used vehicle prices stayed relatively flat in November compared to October, although they remained higher on a year-over-year basis, wrote ADESA's Tom Kontos in his November 2010 Kontos Kommentary column.

The rate of increase in wholesale prices on a year-over-year basis should continue to diminish as year-ago "comps" get stronger. However, wholesale prices will likely follow their typical strengthening seasonal pattern on a month-over-month basis in December and into the first few months of 2011, reinforced by continued tight used vehicle supply.

According to ADESA Analytical Services' monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class1, wholesale used vehicle prices in October averaged $9,788 - up 0.2 percent from October and 1.9 percent versus prior year. Among segments that have significant volume and number of model entries, minivans had particularly robust prices in November.

Manufacturers registered a 1.4 percent month-over-month price decrease and a 1.2 percent year-over-year rise. Fleet/lease consignors experienced a 1.3 percent sequential price decrease and a 3.8 percent annual increase. Dealer consignors saw a 0.6 percent average price increase versus October and a 9.6 percent uptick versus November 2009.

ADESA Analytical Services estimates that auction industry inventory levels stood at 32 days at month-end compared to 37 days last November - an indication of continued tight supply.

Based on data from CNW Marketing/Research, retail used-vehicle sales in November were down 9.6 percent year-over-year for franchised dealers, but up 3.4 percent for independent dealers. On a month-over-month basis, used-vehicle sales were down for both franchised (down 6.2 percent) and independent dealers (down 9.2 percent).  Certified-used vehicle sales in November were down 10.6 percent versus October but up 28.1 percent compared to November 2009, according to Autodata. Based on data from the Bureau of Labor Statistics, the consumer price index for used vehicles rose by 6.0 percent year-over-year in November, which was considerably less of an increase than the double-digit increases recorded throughout most of this year.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Autonomous Vehicles and the Changing Role of the Fleet Manager

With fewer drivers and substantially longer fleet lifecycles, fleet managers will pivot to new job functions.

2017: Fleet Mix Will Be Paramount

Car rental companies are migrating to vehicle segments with better residual values, though not without bumps in the road.

Auto Rental Summit: Five Trend Lines

Taking in the seminars, discussions, and networking at the 2016 Auto Rental Summit, trend lines emerged around shifts in model mix, data protection issues, increasing labor costs, workforce engagement, and new platforms to rent cars.

Job Finder: Access Top Talent. Fill Key Positions.