Executive Vice President & Chief Economist
ADESA Analytical Services
Wholesale prices were up month-over-month and year-over-year. While it was strong on both the seasonal and secular market levels, supply growth is bringing down pressure on prices. That’s made more clear by lower conversion rates and price weakness for particular age, sale type, and model class segments. One problem with basing conclusions on overall prices is that the data set omits vehicles that no-sold and encourages a false sense of confidence. Off-rental program vehicles fall in this class; vehicles that had been curtailed from late 2014 were nosale’d in March with hopes of finding better prices later.
Sale Prices Are Biased this Year by “Richer Mix” of Institutional Vehicles:
Late-model off-rental program vehicle have played part in elevating average prices.
Wholesale Prices Averaged $10,646 in March – up 4.7% Over February:
Truck Classes performed much stronger than the car and crossover classes.
Dealer Consignors Only Institutional Segment Seeing Lift from Year Ago:
CPO sales very strong – up 12.4% month-over-month and 7.4% year-over-year.