Executive Vice President & Chief Economist
ADESA Analytical Services
Softening wholesale prices clearly continued into August as off-lease volume grows; prices were down for first since January on year-over-year basis. Retail used vehicle sales is making up for some of it with strong demand especially for certified pre-owned (CPO) units. There has been a temporary lull coming from strong retail new vehicle demand; retail used sales should come back strong in coming months given improving economy and job growth. However, used vehicle prices should continue to decline as supply outpaces demand.
Wholesale Prices at $9,592 — Down 1.6% from July and 0.4% from August 2013:
August prices for compact cars, fullsize vans and mini, midsize and large SUVs were up from July, while all other segments were down.
Manufacturer Sales Saw Weaker Demand for Off-Rental Program Vehicle Inventories:
Prices for off-rental “risk” units within fleet/lease consignor segment were again down significantly.
Retail UV Sales Down 14.8% Month-Over-Month and Down 9.4% Year-Over-Year:
CPO sales were up 11.4% versus July and up 11.1% from the prior year.