Exec¬≠u¬≠tive VP & Chief Econ¬≠o¬≠mist
ADESA Ana¬≠lyt¬≠i¬≠cal Ser¬≠vices
Whole¬≠sale prices were down in Novem¬≠ber from Octo¬≠ber and were essen¬≠tial¬≠ly flat com¬≠pared to Novem¬≠ber 2014. As seen in pre¬≠vi¬≠ous months, that month¬≠ly price increase was dri¬≠ven pri¬≠mar¬≠i¬≠ly by truck prices. Off-rental units con¬≠tributed to price gains, but that upward tick can be deceiv¬≠ing giv¬≠en that ‚Äúcon¬≠ver¬≠sion rates‚ÄĚ (units sold as a per¬≠cent¬≠age of units offered) reached or exceed¬≠ed ask¬≠ing prices in man¬≠u¬≠fac¬≠tur¬≠er and car rental auc¬≠tion sales. More of the price soft¬≠ness came from the grow¬≠ing off-lease vol¬≠ume in three-year old used vehi¬≠cles.
Ana¬≠lyst Fore¬≠casts about Prices Soft¬≠en¬≠ing with Used Sup¬≠ply is Tak¬≠ing Root:
Major sav¬≠ing grace con¬≠tin¬≠ues to be strong retail demand, espe¬≠cial¬≠ly for CPO vehi¬≠cles.
Soft Pric¬≠ing Affect¬≠ing Insti¬≠tu¬≠tion¬≠al Con¬≠signors More than Deal¬≠ers:
Deal¬≠ers have option of retail¬≠ing vehi¬≠cles and only whole¬≠sal¬≠ing units which can sell for attrac¬≠tive prices.
Novem¬≠ber Sales Up 1.1% Over Octo¬≠ber and Mod¬≠est 0.1% Over Novem¬≠ber 2014:
Truck and SUV prices strong rel¬≠a¬≠tive to car and crossover (CUV) prices year-over-year.