November Used Vehicle Prices Continue Upward Trend

November average wholesale prices were up on a month-over-month basis and essentially flat on a year-over-year basis. But as in previous months, the uptick was largely driven by truck prices.

Off-rental units showed price gains, but these gains are deceiving, as manufacturers and rental sellers reduced “conversion rates” (i.e., units sold as a percentage of units offered, 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 November averaged $9,883 — up 1.1% compared to October and 0.1% relative to November 2014. Truck and SUV prices continue to be strong relative to car and crossover (CUV) prices, especially on a year-over-year basis.

Average wholesale prices for used vehicles remarketed by manufacturers were up 3.1% month-over-month and up 4.3% year-over-year, as manufacturers held out for their asking prices by often selling less than 50% of the units offered, according to ADESA. Prices for fleet/lease consignors were down 0.6% sequentially but up 1% annually.

As in October, rental companies saw price declines for off-rental risk units due to higher mileage units as well as market softness, according to ADESA. Prices for three-model-year-old vehicles, a proxy for off-lease vehicles, were down 3.2% month-over-month and 9% year-over-year. And dealer consignors saw a 1.9% price increase versus October and a 3.8% increase relative to November 2014.

Wholesale Used Vehicle Price Trends          
  Average Prices ($/Unit)     Latest Month Versus:  
  Nov-15 Oct-15 Nov-14 Prior Month Prior Year
Total All Vehicles $9,883 $9,775 $9,870 1.1% 0.1%
Total Cars $8,262 $8,140 $8,612 1.5% -4.1%
Compact Car $6,577 $6,565 $6,787 0.2% -3.1%
Midsize Car $7,422 $7,317 $7,672 1.4% -3.3%
Fullsize Car $6,867 $7,092 $7,617 -3.2% -9.8%
Luxury Car $12,022 $11,682 $12,181 2.9% -1.3%
Sporty Car $12,084 $11,815 $12,565 2.3% -3.8%
Total Trucks $11,667 $11,499 $10,856 1.5% 7.5%
Mini Van $7,266 $7,140 $8,147 1.8% -10.8%
Fullsize Van $11,583 $12,291 $10,680 -5.8% 8.5%
Mini SUV $13,518 $13,542 $12,491 -0.2% 8.2%
Midsize SUV $8,545 $8,184 $7,841 4.4% 9.0%
Fullsize SUV $11,941 $11,827 $11,689 1.0% 2.2%
Luxury SUV $18,683 $17,932 $18,929 4.2% -1.3%
Compact Pickup $7,960 $7,826 $7,393 1.7% 7.7%
Fullsize Pickup $14,649 $14,542 $12,911 0.7% 13.5%
Total Crossovers $11,541 $11,461 $11,974 0.7% -3.6%
Compact CUV $10,214 $10,114 $10,866 1.0% -6.0%
Mid/Fullsize CUV $12,497 $12,440 $13,082 0.5% -4.5%

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.

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