Overall average wholesale prices softened in November from a year ago mostly due to 2017 prices that were elevated due to increased demand from hurricanes Harvey and Irma, even though values of former fleet vehicles increased, according to Tom Kontos, KAR Auction Services' chief economist.
Kontos explained the weaker values for used vehicles in his monthly Kontos Kommentary, where he mentioned values were even weaker that lower seasonal levels. Used vehicle prices typically dip toward the end of the year due to more inclement weather on the East Coast and other regions that can chill buying activity at physical auctions.
Overall values fell 4.2% from October and 1.8% from a year ago to an average of $10,599, Kontos said. While truck values showed relative strength to cars, "virtually all model classes" declined. In segments reflective of fleet remarketing efforts, midsize cars increased 6.1% to $11,309, while midsize SUVs increased 9.8% to $19,374.
Prices for fleet consignors fell 3.8% from October, but increased 4.6% from a year ago. Vehicles from manufacturers fell 3% from October and 2.8% from a year ago. Prices for dealer consignors fell 3.7% from October and 1.9% from a year ago.