October Bias Showed Increased Prices Outside the Real Trend

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Whole­sale used vehi­cle prices in Octo­ber aver­aged $9,678 – up 1.3% com­pared to Sep­tem­ber and up 0.9% from Octo­ber 2013. The mar­ket saw a biased aver­age that masked the inher­ent soft­ness in the whole­sale used vehi­cle mar­ket that faces high incom­ing sup­ply. That bias was influ­enced by a large pro­por­tion of high­er priced, late-mod­el rental pro­gram vehi­cles, some of which were sold after long delays from recalls.

Here’s the lat­est Kon­tos Kom­men­tary mar­ket report

Aver­age Prices for Mini­vans Up Sig­nif­i­cant­ly As in Sep­tem­ber:
Reflects increase in per­cent­age of cur­rent and one-year-old mod­els sold in fac­to­ry sales.

Fran­chised Deal­ers Took Used Sup­ply from Off-Lease and Trade-ins:
Demand for used retail by deal­ers at auc­tions didn’t have quite the sup­port for auc­tion prices as in pre­vi­ous months.

CPO Sales Up 7.5% Over Sep­tem­ber and Up 13.8% Over Octo­ber 2013:
Strong CPO has been par­tic­u­lar­ly use­ful in absorb­ing high incom­ing lease vol­umes.

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