In August, wholesale used vehicle prices (on a mix-, mileage- and seasonally adjusted basis) declined 0.7% in August, the fourth consecutive monthly decline, according to Manheim Consulting. The August Manheim Used Vehicle Value Index was 121.8, down 0.4% from a year ago.

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

The downward movement in pricing reflects factors such as increased wholesale supplies and moderating retail demand, says Manheim.

For the major market classes, only pickups and vans, especially cargo vans, increased prices year-over-year. Luxury vehicles had the largest decline in wholesale pricing over the past year, says Manheim.

New vehicle sales sold at a seasonally adjusted annual rate of 17.4 million in August — the fastest since 2006, according to Manheim.

ADESA’s Monthly Used Vehicle Prices Analysis

ADESA also saw a decrease in wholesale used vehicle prices year-over-year and month-to-month. According to ADESA Analytical Services’ monthly analysis, August wholesale used vehicle prices averaged $9,592 — down 0.4% compared to August 2013 and down 1.6% compared to last month.

However, an improving economy and employment growth should help retail used vehicle sales in the coming months.

Wholesale Used Vehicle Price Trends

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.