Tax Season Helps Used Car Prices Continue to Soften

Tom Kon­tos
Exec­u­tive VP & Chief Econ­o­mist
ADESA Ana­lyt­i­cal Ser­vices

Feb­ru­ary saw cumu­la­tive sup­ply increas­ing, this time pushed fur­ther by the nor­mal sea­son­al pat­tern of spring tax sea­son. Prices con­tin­ued to soft­en dur­ing the month, down from Jan­u­ary. Whole­sale used vehi­cle prices aver­aged $10,202 – down 0.5% from Jan­u­ary but up 0.3% com­pared to Feb­ru­ary 2015. Car and mini­van prices con­tin­ued to decline from the pre­vi­ous year, while SUVs/crossovers and pick­ups had price gains.

See Kon­tos Kom­men­tary Cur­rent Used Vehi­cle Mar­ket Con­di­tions

Prices for Fleet/Lease Con­sign­or Sales Down 2.0% M-O-M and 1.8% Y-O-Y:
Vol­umes rose sig­nif­i­cant­ly ver­sus pri­or year part­ly from of high­er off-lease vol­umes.

Fran­chised Deal­ers Had 11.9% Increase and Inde­pen­dents Up 15.5% Y-O-Y:
Both down sig­nif­i­cant­ly on a month-over-month basis for sec­ond month in a row.

Feb­ru­ary CPO Sales Up 10.8% M-O-M and 7.1% Y-O-Y:
Feb­ru­ary sales more than made up for CPO declines dur­ing Jan­u­ary.

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