ADESA: Wholesale Used Car Prices Increase in August

Wholesale prices reversed course in August and increased both sequentially and annually. Key drivers were strong retail sales and a decline in new vehicle incentives. But growing wholesale volumes should keep downward pressure on prices and increase the availability and selection of used vehicles for dealers, according to the latest Kontos Kommentary from ADESA Chief Economist Tom Kontos.

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in August averaged $9,654, — up 2.3% compared to July and 1.4% relative to August 2012.

Prices for used vehicles — remarketed by manufacturers — were down 1.4% month-over-month but up 7.1% year-over-year, while prices for fleet/lease consignors were up 1.3% sequentially and 3.9% annually, according to ADESA. For dealer consignors, there was a 0.4% average price increase versus July 2013 but a 0.4% downturn versus August 2012.

Based on data from CNW Marketing/Research, August sales for retail used vehicle sales were up 4.7% on a year-over year basis. According to Edmunds data, new vehicle sales in August increased to the 16 million unit level despite a 3.6% month-over-month drop in new vehicle incentives.

And based on figures from Autodata, sales of certified pre-owned (CPO) vehicles rose above 200,000 for the first time and were up 25.0% from August 2012.

Wholesale Used Vehicle Price Trends     
  Average Prices ($/Unit)     Latest Month Versus:  
  Aug-13 Jul-13 Aug-12 Prior Month Prior Year
Total All Vehicles $9,654 $9,435 $9,518 2.3% 1.4%
Total Cars $8,733 $8,509 $8,693 2.6% 0.5%
Compact Car $6,934 $6,605 $7,185 5.0% -3.5%
Midsize Car $7,991 $7,701 $7,720 3.8% 3.5%
Fullsize Car $6,893 $6,691 $7,443 3.0% -7.4%
Luxury Car $11,948 $11,768 $11,967 1.5% -0.2%
Sporty Car $12,784 $12,718 $12,361 0.5% 3.4%
Total Trucks $9,645 $9,441 $9,407 2.2% 2.5%
Mini Van $6,142 $5,949 $6,675 3.3% -8.0%
Fullsize Van $9,979 $9,434 $9,751 5.8% 2.3%
Mini SUV $11,341 $11,733 $11,003 -3.3% 3.1%
Midsize SUV $7,042 $6,758 $6,673 4.2% 5.5%
Fullsize SUV $10,113 $9,921 $10,432 1.9% -3.1%
Luxury SUV $18,667 $18,308 $18,562 2.0% 0.6%
Compact Pickup $7,063 $7,255 $7,422 -2.7% -4.8%
Fullsize Pickup $12,023 $11,856 $11,308 1.4% 6.3%
Total Crossovers $12,767 $12,543 $12,796 1.8% -0.2%
Compact CUV $11,504 $11,265 $10,832 2.1% 6.2%
Mid/Fullsize CUV $14,076 $13,871 $15,211 1.5% -7.5%

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.

Comments

  1. 66manoj44 [ December 2, 2013 @ 08:44PM ]

    Before you even climb behind the wheel for that initial evaluation, however, here are 12 important things to look for -- in daylight:
    1. Examine the tires individually. Does each have at least a quarter of an inch of tread? Is the wear even? Are the tires matched in size and brand?

    2. If the vehicle has wheels with spokes, look through the openings on the front wheels to check the disc brake rotors. Are they scored?

    3. Look under the car for fluid leaks. Do this with the engine off and again with it running.

    4. Squat at the front corners of the car and look down along its sides for ripples that might indicate body repairs.

    5. Open and close all the doors and the trunk. Make sure all operate smoothly.

    6. Lock and unlock all the doors from inside and out.

    Preowned Car Sales

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