For the third month in a row, average wholesale used vehicle prices fell significantly on a month-over-month basis, falling below $10,000 for the first time this year. Supply growth continues to put downward pressure on prices despite strong demand driven by relatively high levels of retail used vehicle sales, especially for certified pre-owned (CPO) vehicles.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class1, wholesale used vehicle prices in July averaged $9,878 – down 3.3% compared to June, although up 1.4% relative to July 2014. Low fuel prices appear to be preferentially benefitting pickup truck values, which rose 2.2% month over month, while luxury car prices took a 9.6% month-over-month hit.
Average wholesale prices for used vehicles remarketed by manufacturers were down 10.2% month-over-month and 14.7% year-over-year, as prices for off-rental program vehicles continue to be negatively affected by abundant supply. (The same goes for off-rental risk vehicles.) Prices for fleet/lease consignors were up a modest 0.3% sequentially and down 0.2% annually. Dealer consignors saw a 7.6% price decrease versus June and a 1.9% decrease relative to July 2014.
Data from NADA showed an 11.6% year-over-year increase in used vehicle sales by franchised dealers and a 15.0% increase for independent dealers in July. CPO sales were up 4.2% month-over-month and 11.0% year-over-year, according to figures from Autodata.