Kontos Kommentary — July 2015

Sum­ma­ry
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.

Details
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.

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