Kontos: Increasing Supply from Diverse Channels Softens Used Car Prices

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Whole­sale prices con­tin­ued soft­en­ing in July; that came from retail used vehi­cle sales com­ing down year-over-year (though up month-over-month). Deal­ers also saw more trade-ins from strong new vehi­cle sales. As expect­ed, sup­ply is con­tin­u­ing to increase as more off-lease and off-rental units entered mar­ket though online upstream and phys­i­cal auc­tion chan­nels; and grow­ing auc­tion inven­to­ries.

Click here to read July 2014 Kon­tos Kom­men­tary

Whole­sale Used Vehi­cle Prices Aver­aged $9,743 in July:
That was down 2.2% from June and up 3.3% from July 2013.

Prices Were Down for Vir­tu­al­ly All Mod­el Class­es Between June and July:
Mini­vans and Mini SUVs hard­est hit, with month-over-month (M-O-M) declines of 5.7% and 3.8%, respec­tive­ly.

Prices for Used Remar­ket­ed by Man­u­fac­tur­ers Down 1.9% M-O-M and 4.7% Y-O-Y:
That indi­cat­ed weak­er demand for high off-rental pro­gram vehi­cle inven­to­ries.


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