Retail Demand Spurred by CPO Helped Offset Off-Lease and Off-Rental

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Whole­sale prices soft­ened in May from an April spring market/tax sea­son peak. That soft­en­ing could be a pre­cur­sor to even more price decline espe­cial­ly in areas like the North­east where off-lease sup­ply growth is expect­ed to be con­cen­trat­ed. Retail demand was strong enough to off­set off-rental and off-lease vol­ume. Demand for cer­ti­fied pre-owned (CPO) units help off­set the grow­ing sup­ply.

Check out the Kon­tos Kom­men­tary edi­tion cov­er­ing the May mar­ket

There Was Some Hes­i­tan­cy from Sell­ers to Accept Low­er Prices in May:
That was reflect­ed in low con­ver­sion rates for those con­signors.

ADESA Ana­lyt­i­cal Ser­vices Found Aver­age UV Price to be $10,321:
Down 1.5% from April, up 5.4% from May 2013; truck prices con­tin­ued to be firmer than car prices.

Deal­er Con­signors 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 vehi­cle sales.

Tags:


0 Comments

    Leave a Reply

    Your email address will not be published. Required field are marked *.