High Demand for Late-Model CPO-Eligible Units Keeps Prices High

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Whole­sale prices were quite strong in April – up 0.3% over March and 3.7% over April 2013. That came from scarci­ty of sup­ply and high demand for late-mod­el, CPO-eli­gi­ble used vehi­cles; demand was par­tic­u­lar­ly strong for off-rental pro­gram and risk units. Off-lease vol­ume will con­tin­ue to go up, which should cor­rect the late-mod­el sup­ply-demand imbal­ance and bring prices into mod­er­a­tion.

Here’s the lat­est edi­tion of Kon­tos Kom­men­tary

Used Vehi­cle Prices Aver­aged $10,468 in the Whole­sale Used Vehi­cle Prices by Vehi­cle Mod­el Class:
Mid­size and mini SUVs expe­ri­enced the strongest month-over-month (MOM) and year-over-year (YOY) increas­es.

Used Vehi­cles Remar­ket­ed by Man­u­fac­tur­ers Up 0.8% MOM and 8.1% YOY:
Dimin­ished quan­ti­ties of fac­to­ry units have made prices strong in recent months.

Sales of Cer­ti­fied Pre-Owned Vehi­cles Were Down 6.5% from March:
March had reached an all-time high, and April was up 9.5% from year ago.

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