The Car and Truck Fleet and Leasing Management Magazine

Wholesale Prices Softening Despite YOY Increase in June, Kontos Says

July 17, 2017

Kontos
Kontos

Average wholesale prices in June were down vs. June but up vs. a year ago. A drill down into the data, however, reveals price softening on a year-over-year basis when accounting for sales type, vehicle age, model class, and mileage, KAR Chief Economist Tom Kontos said today.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices, the average wholesale price for a used vehicle in June was $11,067, down 0.7% from May but up 4.7% from a year ago.

"Compact and fullsize pickup trucks and minivans show significant average price gains for the month, while most other model classes registered month-over-month declines or modest increases," Kontos said in his June Kontos Kommentary.

Average wholesale prices for used vehicles remarketed by manufacturers were down 1% month over month and down 1.9% year over year. Prices for fleet/lease consignors were down 1.1% sequentially and up 3.2% annually. Average prices for dealer consignors were up 0.9% vs. May and up 7.7% relative to June 2016.

"Price softening continues to be evident when holding constant for sale type, mode-year age, mileage, and model-class segment," Kontos added. "As the table show, average prices for both of these two bellwether car and truck segments were down by about 4% year over year, reflecting growth in off-lease supply."

Certified pre-owned sales were down 6.6% from May and 0.8% from a year ago, according to Autodata Corp. On a year-to-date basis through June, CPO sales were up 1.2%.

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