Off-Rental Drove Used Prices Up Higher on Temporary Basis

Tom Kon­tos
Exec­u­tive Vice Pres­i­dent
ADESA Ana­lyt­i­cal Ser­vices

Whole­sale prices last month were up month-over-month and year-over-year. Jan­u­ary prices aver­aged $10,220 – up 3.6% com­pared to Decem­ber and up 2.4% rel­a­tive to Jan­u­ary 2014. Price vari­ances by mod­el class seg­ment were dri­ven main­ly by high­er off-rental pro­gram vehi­cle sales this Jan­u­ary com­pared to Decem­ber and Jan­u­ary 2014. As these pro­gram vehi­cles are cur­rent-mod­el-year or one-year-old mod­els that sell for high­er process than oth­er auc­tion sales types, not a lot should be read into these prices increas­es in some mod­el class seg­ments.

Here’s the lat­est edi­tion of Kon­tos Kom­men­tary

While Prices Were Strong in Jan­u­ary Over Decem­ber and Jan­u­ary 2014:
Still need to look at under­ly­ing impact sup­ply of off-rental and off-lease is hav­ing.

Mid­size SUV and Full­size Pick­ups Still Showed Price Strength:
Even after strip­ping off the impact of high­er off-rental pro­gram vehi­cle sales.

CPO Sales and Oth­er Strong Retail Demand Along with Mod­er­ate Incen­tives:
Have par­tial­ly off­set impacts for one- and three-year-old seg­ments and used vehi­cle mar­ket as a whole.



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