Prices Fell from Year Ago from Surging Supply

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Whole­sale used vehi­cle prices fell year-over-year for the first time since August 2014 as a more clear pic­ture is being paint­ed on the down­ward pres­sure surg­ing sup­ply has on prices. Cars are see­ing the impact more than trucks, which are weath­er­ing low gaso­line prices bet­ter than cars. The impact of pre­vi­ous­ly ele­vat­ed high­er-priced, late-mod­el off-rental pro­gram vehi­cles are hav­ing less effect on the mar­ket. Pric­ing has become more clear in terms of sell­er-type com­po­si­tion.

Here’s the lat­est edi­tion of Kon­tos Kom­men­tary

Aver­age New Vehi­cle Incen­tives Have Been Climb­ing Recent­ly:
That’s putting fur­ther down­ward pres­sure on used vehi­cle prices.

At $9,575, Whole­sale Prices Were Down 3.1% from July and 0.2% from Year Ago:
Car prices took the hit with a 5.2% annu­al decline, while truck prices shot up 9.8%.

Fran­chised Deal­ers Sold 10.6% More Y-O-Y in August, and Inde­pen­dents Were Up 12.4%:
CPO sales were down 0.1% from July and 1.1% from one year ago.

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