2014 a Better Year than Expected for Wholesale Prices

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Price sta­bil­i­ty con­tin­ued in Decem­ber. Whole­sale used vehi­cle prices fell mod­est­ly, but were up year-over-year. Sup­ply con­tin­ued to grow through off-lease, off-rental, off-fleet, repos, and oth­er chan­nels. That was off­set by deal­er con­sign­ment vol­ume yield­ing a “rich­er mix” that ele­vates aver­age prices; oth­er fac­tors sta­bi­liz­ing prices includ­ed new vehi­cle incen­tives being fair­ly benign, strong retail used vehi­cle sales – espe­cial­ly of cer­ti­fied pre-owned vehi­cles, and redis­tri­b­u­tion of vol­ume into mul­ti­ple remar­ket­ing chan­nels. Sup­ply was also affect­ed by dis­rup­tions due to weath­er and vehi­cle recalls.

Here’s the lat­est edi­tion of Kon­tos Kom­men­tary

Prices Were Down 0.3% from Novem­ber and Up 2% Over Decem­ber 2013:
Lux­u­ry and sporty cars had healthy price increas­es as deal­ers stocked for hol­i­days.

Used Vehi­cles Remar­ket­ed by Man­u­fac­tur­ers Up 9.6% M-O-M but Down 2.8% Y-O-Y:
Sale cur­tail­ments due to recalls were a fac­tor in these Decem­ber pric­ing results.

Retail Used Sales Reached 29.6M Units in 2014 – Close to Last Year’s Total:
Prof­itable cer­ti­fied sales were up – 2.3M units in 2014 ver­sus 2.1M in 2013.



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