Average wholesale used vehicle prices fell on a year-over-year basis for the first time since August of 2014, as previously elevated sales of higher-priced, late-model off-rental program units have subsided and comparisons to prior year are now on more of an apples-to-apples basis in terms of seller-type composition. We now see a clearer picture of the downward pressure that supply growth is putting on prices. Moreover, though retail used vehicle demand has been strong, average new car incentives have been climbing, which puts further downward pressure on used vehicle prices. These impacts are most evident in car prices, as truck prices have held up well in the current low fuel price environment.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class1, wholesale used vehicle prices in August averaged $9,575 – down 3.1% compared to July and down 0.2% relative to August 2014. Car prices continue to bear the brunt of price declines, falling 5.8% month over-month and 5.2% year-over-year, while truck prices fell only modestly (0.6%) on a sequential basis and actually went up significantly (9.8%) on a year-over-year basis.
Average wholesale prices for used vehicles remarketed by manufacturers were up 1.7% month-over-month but down 9.1% year-over-year. Prices for fleet/lease consignors were up a modest 0.7% sequentially but down 2.0% annually. Dealer consignors saw a 3.6% price decrease versus July but a 2.1% increase relative to August 2014.
Data from NADA showed a 10.6% year-over-year increase in used vehicle sales by franchised dealers and a 12.4% increase for independent dealers in August. CPO sales were down 0.1% month-over-month and down 1.1% year-over-year, according to figures from Autodata.