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.
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.