ADESA: Wholesale Used Car Prices Increase in August

According to ADESA Chief Economist Tom Kontos, August wholesale used car prices increased 2.3% compared to July.

by Staff

September 11, 2013

2 min to read

Wholesale prices reversed course in August and increased both sequentially and annually. Key drivers were strong retail sales and a decline in new vehicle incentives. But growing wholesale volumes should keep downward pressure on prices and increase the availability and selection of used vehicles for dealers, 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 August averaged $9,654, — up 2.3% compared to July and 1.4% relative to August 2012.

Prices for used vehicles — remarketed by manufacturers — were down 1.4% month-over-month but up 7.1% year-over-year, while prices for fleet/lease consignors were up 1.3% sequentially and 3.9% annually, according to ADESA. For dealer consignors, there was a 0.4% average price increase versus July 2013 but a 0.4% downturn versus August 2012.

Based on data from CNW Marketing/Research, August sales for retail used vehicle sales were up 4.7% on a year-over year basis. According to Edmunds data, new vehicle sales in August increased to the 16 million unit level despite a 3.6% month-over-month drop in new vehicle incentives.

And based on figures from Autodata, sales of certified pre-owned (CPO) vehicles rose above 200,000 for the first time and were up 25.0% from August 2012.

Wholesale Used Vehicle Price Trends
	Average Prices ($/Unit)			Latest Month Versus:
	Aug-13	Jul-13	Aug-12	Prior Month	Prior Year
Total All Vehicles	$9,654	$9,435	$9,518	2.3%	1.4%
Total Cars	$8,733	$8,509	$8,693	2.6%	0.5%
Compact Car	$6,934	$6,605	$7,185	5.0%	-3.5%
Midsize Car	$7,991	$7,701	$7,720	3.8%	3.5%
Fullsize Car	$6,893	$6,691	$7,443	3.0%	-7.4%
Luxury Car	$11,948	$11,768	$11,967	1.5%	-0.2%
Sporty Car	$12,784	$12,718	$12,361	0.5%	3.4%
Total Trucks	$9,645	$9,441	$9,407	2.2%	2.5%
Mini Van	$6,142	$5,949	$6,675	3.3%	-8.0%
Fullsize Van	$9,979	$9,434	$9,751	5.8%	2.3%
Mini SUV	$11,341	$11,733	$11,003	-3.3%	3.1%
Midsize SUV	$7,042	$6,758	$6,673	4.2%	5.5%
Fullsize SUV	$10,113	$9,921	$10,432	1.9%	-3.1%
Luxury SUV	$18,667	$18,308	$18,562	2.0%	0.6%
Compact Pickup	$7,063	$7,255	$7,422	-2.7%	-4.8%
Fullsize Pickup	$12,023	$11,856	$11,308	1.4%	6.3%
Total Crossovers	$12,767	$12,543	$12,796	1.8%	-0.2%
Compact CUV	$11,504	$11,265	$10,832	2.1%	6.2%
Mid/Fullsize CUV	$14,076	$13,871	$15,211	1.5%	-7.5%

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.

Topics:Used Vehicle Values Used Vehicles ADESA Tom Kontos Remarketing