Former fleet vehicles sold by KAR Global's ADESA remarketing unit fell 3.2% in value in November from the prior month but remain 3% ahead of a year ago partly due to a softening wholesale market, according to the company's chief economist.
The average value of a vehicle sold for a fleet consignor fell to $12,885 in November compared to the readjusted $13,309 average for October. The overall used vehicle market for ADESA fell 1.9% to $10,924 from October but remained 3.1% higher than a year ago.
The overall market has fallen six consecutive months, a slide that is expected to continue, according to Tom Kontos, KAR Glopbal's chief economist.
"It doesn't show signs of stopping," Kontos wrote in his monthly commentary. "That's a holiday season phrase that can be applied to November's continuation of general softening in used vehicle values, as overall average prices fell on a month-over-month basis for the sixth month in a row. This was true despite another month of strong CPO sales, which are nonetheless a positive factor for late-model (especially off-rental and off-lease) values."
Among midsize cars and midsize SUVs, vehicle categories that are used as a barometer of used fleet sales, saw mixed results. Midsize sedans increased 1% to $11,419 from a year ago, while midsize SUVs fell 1.1% to $19,196 from a year ago.
The decline in midsize SUV values "may be indicative of oversupply of these units," Kontos said.