Exec¬≠u¬≠tive VP & Chief Econ¬≠o¬≠mist
ADESA Ana¬≠lyt¬≠i¬≠cal Ser¬≠vices
Whole¬≠sale prices soft¬≠ened in May from an April spring market/tax sea¬≠son peak. That soft¬≠en¬≠ing could be a pre¬≠cur¬≠sor to even more price decline espe¬≠cial¬≠ly in areas like the North¬≠east where off-lease sup¬≠ply growth is expect¬≠ed to be con¬≠cen¬≠trat¬≠ed. Retail demand was strong enough to off¬≠set off-rental and off-lease vol¬≠ume. Demand for cer¬≠ti¬≠fied pre-owned (CPO) units help off¬≠set the grow¬≠ing sup¬≠ply.
There Was Some Hes¬≠i¬≠tan¬≠cy from Sell¬≠ers to Accept Low¬≠er Prices in May:
That was reflect¬≠ed in low con¬≠ver¬≠sion rates for those con¬≠signors.
ADESA Ana¬≠lyt¬≠i¬≠cal Ser¬≠vices Found Aver¬≠age UV Price to be $10,321:
Down 1.5% from April, up 5.4% from May 2013; truck prices con¬≠tin¬≠ued to be firmer than car prices.
Deal¬≠er Con¬≠signors Saw 2.5% Price Drop from April and 3.7% Up Over May 2013:
Came from units obtained in part from trade-ins as May saw strong new vehi¬≠cle sales.