Used Vehicle Prices Fall Below $10K

For the third month in a row, average wholesale used vehicle prices fell significantly on a month-over-month basis, falling below $10,000 for the first time this year, according to the latest Kontos Kommentary from ADESA Chief Economist Tom Kontos.

Supply growth continues to put downward pressure on prices — despite strong demand driven by relatively high levels of retail used vehicle sales, especially for certified pre-owned (CPO) vehicles, according to Kontos.

According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in July averaged $9,878 — down 3.3% compared to June but up 1.4% relative to July 2014. Low fuel prices appear to be benefitting pickup truck values, which rose 2.2% month over month. However, luxury car prices took a 9.6% month-over-month hit.

Average wholesale prices for used vehicles remarketed by manufacturers were down 10.2% month-over-month and 14.7% year-over-year, as prices for off-rental program vehicles continue to be negatively affected by abundant supply, according to ADESA. The same goes for off-rental risk vehicles.

In July, prices for fleet/lease consignors were up a modest 0.3% sequentially and down 0.2% annually, according to ADESA. Dealer consignors saw a 7.6% price decrease versus June and a 1.9% decrease relative to July 2014.

Wholesale Used Vehicle Price Trends          
  Average Prices ($/Unit)     Latest Month Versus:  
  Jul-15 Jun-15 Jul-14 Prior Month Prior Year
Total All Vehicles $9,878 $10,215 $9,743 -3.3% 1.4%
Total Cars $8,507 $8,883 $8,642 -4.2% -1.6%
Compact Car $7,107 $6,892 $6,708 3.1% 5.9%
Midsize Car $7,630 $7,806 $7,864 -2.3% -3.0%
Fullsize Car $7,306 $7,245 $6,854 0.9% 6.6%
Luxury Car $11,730 $12,982 $12,117 -9.6% -3.2%
Sporty Car $12,520 $13,581 $12,578 -7.8% -0.5%
Total Trucks $11,344 $11,536 $10,318 -1.7% 9.9%
Mini Van $6,842 $7,399 $6,375 -7.5% 7.3%
Fullsize Van $12,423 $12,870 $10,967 -3.5% 13.3%
Mini SUV $13,569 $13,655 $12,143 -0.6% 11.7%
Midsize SUV $7,972 $8,049 $7,376 -1.0% 8.1%
Fullsize SUV $11,091 $11,451 $10,221 -3.1% 8.5%
Luxury SUV $17,765 $19,731 $19,295 -10.0% -7.9%
Compact Pickup $7,916 $8,162 $7,445 -3.0% 6.3%
Fullsize Pickup $14,745 $14,433 $12,966 2.2% 13.7%
Total Crossovers $11,577 $11,998 $12,154 -3.5% -4.7%
Compact CUV $10,431 $10,609 $10,924 -1.7% -4.5%
Mid/Fullsize CUV $12,458 $13,031 $13,409 -4.4% -7.1%

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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