CARMEL, Ind. — Tom Kontos, chief economist for ADESA Analytical Services, reported today that average wholesale prices in October partially reversed declines seen in previous months.
“Prices remained down on a year-over-year basis, but even this decline masks underlying strength, in that this October’s results are being measured against tough comparables from last October’s temporary price strength stemming from Superstorm Sandy,” Kontos wrote in his monthly Kontos Kommentary report.
According to ADESA Analytical Services’ monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used-vehicle prices in October averaged $9,590, — up 1.2 percent compared to September but down 1.8 percent from October 2012.
The uptick runs contrary to typical seasonal declines, Kontos said. “Trucks seemed to benefit in particular from this respite in price softening,” he added.
October’s increase in average prices can partially be attributed to proportionately more high-priced program units remarketed by manufacturers, Kontos explained. “The overriding dynamic will remain that wholesale used-vehicle prices continue to receive downward pressure from returning supplies of off-lease units and other sources of used-car volume growth resulting from stronger new-vehicle sales,” Kontos said.
Prices for used vehicles remarketed by manufacturers were down 5.3 percent month over month, although prices were up 2.1 percent year over year. Prices for fleet/lease consignors were also down 2.7 percent month over month but up 1.5 percent year over year. Dealer consignors actually saw a 1 percent average price increase vs. September 2013, but the prices were down 3.3 percent vs. October 2012.
Based on data from CNW Marketing/Research, retail used-vehicle sales were down 10.8 percent month over month but up 1.6 percent on a year-over year basis in October. Sales of certified pre-owned (CPO) vehicles were up 13.1 percent from the prior month and 20.6 percent from the prior year, based on figures from Autodata.