Used Vehicle Prices Continue Four-Month Decline

Wholesale used vehicle prices for May (on a mix-, mileage- and seasonally adjusted basis) declined for the fourth consecutive month. This put the Manheim Used Vehicle Value Index to a reading of 123.8 in May, which represented a decline of 0.7% from a year ago.

Manheim Used Vehicle Changes for Selective Market Classes (May 2015 vs. May 2014)

Chart courtesy of Manheim.
Chart courtesy of Manheim.

In May, auction prices for rental risk units were down more than 10% from a year ago. Older and rougher-condition vehicles brought down the price, according to Manheim. Only 29% of sales were accounted for by 2014 model year vehicles.

In terms of wholesale pricing, compact cars were weak while pickups were strong, says Manheim. Luxury cars also continued to underachieve in May. Average mileage declined slightly during the month after increasing for many years.

ADESA’s Monthly Used Vehicle Prices Analysis

ADESA also saw a decline in wholesale used vehicle prices month-over-month, according to the latest Kontos Kommentary from ADESA Chief Economist Tom Kontos.

According to ADESA Analytical Services’ monthly analysis, May wholesale used vehicle prices averaged $10,440 — down 2.5% compared to April but up 1.1% relative to May 2014. Only full-size vans, mini SUVS and full-size SUVS had month-over-month increases in average prices.

Prices for used vehicles remarketed by manufacturers were down 0.2% month-over-month and down 6.5% year-over-year, according to ADESA. Prices for fleet/lease consignors were down 3% sequentially and down 3% annually, and prices for dealer consignors were down 2.6% versus April but up 1.8% compared to May 2014.

Wholesale Used Vehicle Price Trends

  Average Prices ($/Unit)     Latest Month Versus:  
  May-15 Apr-15 May-14 Prior Month Prior Year
Total All Vehicles $10,440 $10,703 $10,328 -2.5% 1.1%
           
Total Cars $9,085 $9,376 $9,226 -3.1% -1.5%
Compact Car $7,213 $7,433 $7,267 -3.0% -0.7%
Midsize Car $8,024 $8,298 $8,504 -3.3% -5.6%
Fullsize Car $7,183 $7,641 $7,200 -6.0% -0.2%
Luxury Car $12,923 $13,205 $12,668 -2.1% 2.0%
Sporty Car $13,885 $14,084 $13,140 -1.4% 5.7%
Total Trucks $11,777 $11,915 $10,914 -1.2% 7.9%
Mini Van $7,630 $8,221 $7,311 -7.2% 4.4%
Fullsize Van $12,622 $12,471 $11,237 1.2% 12.3%
Mini SUV $14,187 $14,130 $13,020 0.4% 9.0%
Midsize SUV $8,575 $8,717 $8,387 -1.6% 2.2%
Fullsize SUV $12,017 $11,900 $10,901 1.0% 10.2%
Luxury SUV $19,889 $19,947 $19,765 -0.3% 0.6%
Compact Pickup $8,089 $8,107 $7,723 -0.2% 4.7%
Fullsize Pickup $14,556 $14,607 $13,343 -0.4% 9.1%
Total Crossovers $12,332 $12,700 $12,817 -2.9% -3.8%
Compact CUV $10,843 $11,255 $11,575 -3.7% -6.3%
Mid/Fullsize CUV $13,447 $13,763 $14,095 -2.3% -4.6%

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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