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.
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.