Wholesale Used Vehicle Prices Resume General Softening, ADESA Reports

Average wholesale used vehicle prices in November resumed the general softening they have shown since spring, according to the latest Kontos Kommentary from ADESA's Chief Economist Tom Kontos.

Kontos said that prices may have shown even more Thanksgiving holiday softening if it weren’t for the strong retail demand and somewhat diminished supply in the Northeast following Superstorm Sandy.

Prices for younger units also held up quite well, especially for off-rental program units sold by auto manufacturers. This upward pressure on prices will gradually wane and remarketers are advised to sell units sooner rather than later, perhaps by year-end, Kontos said.

November Prices

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in November averaged $9,554 — down 2.2% compared to October and down 3.2% relative to November 2011. Fullsize cars, vans and SUVs took the biggest price hits during the month.

Prices for used vehicles remarketed by manufacturers rose by 2.7% month-over-month in November and were up 6.2% year over year, indicating good absorption of off-rental program vehicles. Fleet/lease consignors experienced a 3% decrease in November, leaving prices down 2.6% year over year. Dealer consignors saw a 1.7% average price decrease versus October, resulting in prices being down 3.9% versus November 2011.

Based on data from CNW Marketing/Research, retail used vehicle sales in November were up 28.7% year-over-year for franchised dealers and 32.7% for independent dealers, although down by 6.6% month-over-month for both groups combined. November sales of certified used vehicles were up 0.9% month-over-month but up by 7.3% year-over-year based on data from Autodata.

Wholesale Used Vehicle Price Trends

 

Average Prices ($/Unit)

Latest Month Versus:

  Nov-12 Oct-12 Nov-11 Prior Month Prior Year
Total All Vehicles $9,554 $9,764 $9,869 -2.2% -3.2%
Total Cars $8,602 $8,822 $8,756 -2.5% -1.8%
Compact Car $6,848 $7,083 $6,974 -3.3% -1.8%
Midsize Car $7,789 $7,913 $7,704 -1.6% 1.1%
Fullsize Car $7,674 $8,380 $7,514 -8.4% 2.1%
Luxury Car $11,807 $11,950 $12,896 -1.2% -8.4%
Sporty Car $11,959 $12,269 $12,193 -2.5% -1.9%
Total Trucks $9,666 $9,783 $10,099 -1.2% -4.3%
Mini Van $6,971 $6,978 $7,411 -0.1% -5.9%
Fullsize Van $9,471 $9,947 $9,720 -4.8% -2.6%
Mini SUV $10,592 $10,809 $10,492 -2.0% 1.0%
Midsize SUV $6,828 $6,850 $7,287 -0.3% -6.3%
Fullsize SUV $11,344 $11,729 $12,343 -3.3% -8.1%
Luxury SUV $18,631 $19,014 $20,423 -2.0% -8.8%
Compact Pickup $7,158 $7,272 $7,694 -1.6% -7.0%
Fullsize Pickup $11,398 $11,362 $11,392 0.3% 0.1%
Total Crossovers $12,777 $13,084 $13,529 -2.3% -5.6%
Compact CUV $10,745 $10,893 $11,230 -1.4% -4.3%
Mid/Fullsize CUV $15,157 $15,592 $16,265 -2.8% -6.8%
Source: ADESA Analytical Services. October revised.

This Kontos Kommentary analysis is based on nearly six million annual sales transactions from more than 150 of the largest U.S. wholesale auto auctions, including those of ADESA as well as other auction companies. ADESA Analytical Services segregates these transactions to study trends by vehicle model class.


To see October's analysis from ADESA, click here.

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