October Used Vehicle Prices Rise After Five-Month Decline

Wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) ticked up in October, after declining in each of the previous five months, according to Manheim Consulting. The October Manheim Used Vehicle Value Index reading was 121.8, a decline of 0.4% from a year ago.

Manheim Used Vehicle Changes for Selective Market Classes (October 2014 vs. October 2013)

After eliminating some inventory-heavy positions in the third quarter, dealers were once again in acquisition mode during October, says Manheim. Other factors included higher new vehicle transaction prices, stable incentive activity and renewed consumer interest in used vehicles.

As a result of recall-delayed selling, auction volumes of rental risk units were up significantly in October, according to Manheim. Average mileage was a record 44,800 miles.

For the major market classes, pickups and vans remain the strongest segments year-over-year, while midsize and compact car pricing continues to suffer from competitive new vehicle pricing and greater consumer interest in the small crossover segment, says Manheim.

ADESA’s Monthly Used Vehicle Prices Analysis

ADESA also saw an increase in wholesale used vehicle prices month-over-month — but also saw an increase year-over-year, according to the latest Kontos Kommentary from ADESA Chief Economist Tom Kontos.

According to ADESA Analytical Services’ monthly analysis, October wholesale used vehicle prices averaged $9,678 — up 1.3% compared to September and up 0.9% compared to October 2013.

Dealer consignors were the only seller group that saw average price increases in October, a 1.4% increase versus September, according to ADESA. Prices for fleet/lease consignors were down 3.7% sequentially and 2.2% annually, and prices for off-rental “risk” units were also down significantly.

Wholesale Used Vehicle Price Trends

 Average Prices ($/Unit)  Latest Month Versus: 
  Oct-14 Sep-14 Oct-13 Prior Month Prior Year
Total All Vehicles $9,678 $9,554 $9,590 1.3% 0.9%
Total Cars $8,466 $8,322 $8,455 1.7% 0.1%
Compact Car $6,890 $6,681 $6,695 3.1% 2.9%
Midsize Car $7,529 $7,634 $7,735 -1.4% -2.7%
Fullsize Car $7,762 $6,514 $7,049 19.1% 10.1%
Luxury Car $11,610 $11,648 $11,597 -0.3% 0.1%
Sporty Car $12,322 $11,990 $12,102 2.8% 1.8%
Total Trucks $10,554 $10,403 $9,963 1.4% 5.9%
Mini Van $7,882 $7,079 $6,920 11.3% 13.9%
Fullsize Van $10,704 $11,477 $9,969 -6.7% 7.4%
Mini SUV $12,462 $12,265 $11,380 1.6% 9.5%
Midsize SUV $7,628 $7,427 $7,013 2.7% 8.8%
Fullsize SUV $11,094 $10,506 $11,217 5.6% -1.1%
Luxury SUV $17,917 $18,485 $18,781 -3.1% -4.6%
Compact Pickup $7,308 $7,255 $7,105 0.7% 2.9%
Fullsize Pickup $12,826 $12,916 $11,927 -0.7% 7.5%
Total Crossovers $11,918 $11,936 $12,573 -0.2% -5.2%
Compact CUV $10,644 $10,499 $11,161 1.4% -4.6%
Mid/Fullsize CUV $13,166 $13,284 $14,031 -0.9% -6.2%

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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