Minivans Lead July Used Vehicle Price Decline

The softening trend in wholesale prices continued in July, as retail used vehicle sales were down on a year-over-year basis but up month-over-month, according to the latest Kontos Kommentary from ADESA Chief Economist Tom Kontos. In addition, supply also grew as more off-lease and off-rental units entered the online upstream and physical auction channels.

Growing auction inventories are also exerting downward pressure on wholesale prices, says Kontos.

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in July averaged $9,743 — down 2.2% compared to June but up 3.3% relative to July 2013.

Prices declined between June and July for virtually all model classes. Minivans and mini SUVs were particularly hard-hit, with month-over-month price declines of 5.7% and 3.8% respectively, according to ADESA.

Indicating weaker demand for high off-rental program vehicle inventories, prices for used vehicles remarketed by manufacturers were down 1.9% month-over-month and down 4.7% year-over-year. Prices for fleet/lease consignors were down 0.9% sequentially but up 2.2% annually, though prices for off-rental “risk” units within this segment were down significantly.

For dealer consignors, there was a 2.9% average price decrease versus June, and prices were flat relative to July 2013.

Based on data from CNW Marketing/Research, retail used vehicle sales in July were up 1.2% month-over-month but down 5.2% year-over-year.

And based on figures from Autodata, sales of certified pre-owned (CPO) vehicles were down 10.4% versus June, though they were up 9.4% from the prior year.

Wholesale Used Vehicle Price Trends     
  Average Prices ($/Unit)     Latest Month Versus:  
  Jul-14 Jun-14 Jul-13 Prior Month Prior Year
           
Total All Vehicles $9,743 $9,958 $9,435 -2.2% 3.3%
Total Cars $8,642 $8,901 $8,509 -2.9% 1.6%
Compact Car $6,708 $6,861 $6,605 -2.2% 1.6%
Midsize Car $7,864 $8,116 $7,701 -3.1% 2.1%
Fullsize Car $6,854 $7,114 $6,691 -3.7% 2.4%
Luxury Car $12,117 $12,397 $11,768 -2.3% 3.0%
Sporty Car $12,578 $12,931 $12,718 -2.7% -1.1%
Total Trucks $10,318 $10,502 $9,441 -1.8% 9.3%
Mini Van $6,375 $6,761 $5,949 -5.7% 7.2%
Fullsize Van $10,967 $11,206 $9,434 -2.1% 16.3%
Mini SUV $12,143 $12,626 $11,733 -3.8% 3.5%
Midsize SUV $7,376 $7,456 $6,758 -1.1% 9.1%
Fullsize SUV $10,221 $10,542 $9,921 -3.0% 3.0%
Luxury SUV $19,295 $19,478 $18,308 -0.9% 5.4%
Compact Pickup $7,445 $7,539 $7,255 -1.2% 2.6%
Fullsize Pickup $12,966 $13,116 $11,856 -1.1% 9.4%
Total Crossovers $12,154 $12,323 $12,543 -1.4% -3.1%
Compact CUV $10,924 $11,293 $11,265 -3.3% -3.0%
Mid/Fullsize CUV $13,409 $13,408 $13,871 0.0% -3.3%


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.


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