Kontos: Wholesale Used-Vehicle Prices Soften Again in September
CARMEL, Ind. — Wholesale used-vehicle prices softened again in September, the fifth monthly decrease in a row, ADESA’s Chief Economist Tom Konto reported this week. The firm found that wholesale used-vehicle prices averaged $9,557 in September, down 0.4% from August but up 0.8% from one year ago. The slight year-over-year gain reflected a higher percentage ... Read More »
CARMEL, Ind. — Wholesale used-vehicle prices softened again in September, the fifth monthly decrease in a row, ADESA’s Chief Economist Tom Konto reported this week.
The firm found that wholesale used-vehicle prices averaged $9,557 in September, down 0.4% from August but up 0.8% from one year ago. The slight year-over-year gain reflected a higher percentage of institutional sales of late-model vehicles this year vs. last year, which Kontos said masked the softness in prices if the data is viewed on a disaggregated basis.
“Improved retail sales of used vehicle after a tough summer cushioned the blow to wholesale prices from growing supply,” Kontos added.
According to CNW Research, used-vehicle sales in September were up 4.1% on a month-over-month basis and p 4.6% on a year-over-year basis. And according to Autodata, sales of certified pre-owned vehicles were down 15.4% vs. August, which had three fewer selling days this year.
“A better reflection of certified used-vehicle demand is that September CPO sales were up 19.7% from the prior year,” Kontos added.
By category, average prices for minivans were up slightly; Kontos attributing the increase to an increase in the percentage of current and one-year-old models sold in factory sales in September. Trucks and cars moved in opposite directions, with prices for trucks rising significantly on a month-over-month and year-over-year basis, while cars show major sequential and annual prices declines. Crossovers also showed price declines.
Prices for used vehicles remarketed by manufacturers were down 4.2% on a month-over-month basis and down 3.3% on a year-over-year basis, as manufacturers sold of elevated program vehicle inventories, according to Kontos. Prices for fleet/lease consignors were down 2% sequentially and down 1.1% annually.
“Prices for off-rental “risk” units within this segment were again down significantly,” Kontos noted. “Dealer consignors realized a 1.9% average price decrease versus August, although prices were up a modest 0.3% relative to September 2013.”
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