Kontos: Wholesale Prices Resume Decline After Sandy-Induced Spike
In its monthly report, ADESA Analytical Services found that wholesale used-car prices are declining once again after an uptick following Hurricane Sandy. The decline originally began this past spring.
CARMEL, Ind. — Wholesale used-vehicle prices continued to soften despite the rise the segment saw in October. ADESA Analytical Services’ Tom Kontos believes that October spike was only a “blip” caused by increased demand following Superstorm Sandy.
Average wholesale prices for used vehicles in November dipped 2.2 percent from October to $9,554, with the average price also dropping 3.2 percent from November 2011.
Wholesale prices for used cars declined 2.5 percent from the previous month to $8,602, which was also down 1.8 percent compared to the year-ago period. Wholesale prices for used trucks fell 1.2 percent from October to $9,666, which was also down 4.3 percent vs. November 2011. Wholesale prices for used crossovers fell 2.3 percent from October to $12,777, a 5.6 percent drop from the same period last year.
“Nevertheless, prices may have shown even more Thanksgiving holiday softening if it weren’t for the strong retail demand and somewhat diminished supply in the Northeast following the storm,” Kontos stated in the report.
ADESA’s analysis highlights that prices for newer models held up, particularly among off-rental program units sold by auto manufacturers. “This upward pressure on prices will gradually wane and remarketers would be well advised to try and sell units sooner rather than later, perhaps by year-end,” the report reads.
Wholesale Used Vehicle Price Trends | ||||||
Average Prices ($/Unit) | Latest Month Versus: | |||||
Nov-12 | Oct-12 | Nov-11 | Prior Month | Prior Year | ||
Total All Vehicles | $9,554 | $9,764 | $9,869 | -2.2% | -3.2% | |
Total Cars | $8,602 | $8,822 | $8,756 | -2.5% | -1.8% | |
Compact Car | $6,848 | $7,083 | $6,974 | -3.3% | -1.8% | |
Midsize Car | $7,789 | $7,913 | $7,704 | -1.6% | 1.1% | |
Fullsize Car | $7,674 | $8,380 | $7,514 | -8.4% | 2.1% | |
Luxury Car | $11,807 | $11,950 | $12,896 | -1.2% | -8.4% | |
Sporty Car | $11,959 | $12,269 | $12,193 | -2.5% | -1.9% | |
Total Trucks | $9,666 | $9,783 | $10,099 | -1.2% | -4.3% | |
Mini Van | $6,971 | $6,978 | $7,411 | -0.1% | -5.9% | |
Fullsize Van | $9,471 | $9,947 | $9,720 | -4.8% | -2.6% | |
Mini SUV | $10,592 | $10,809 | $10,492 | -2.0% | 1.0% | |
Midsize SUV | $6,828 | $6,850 | $7,287 | -0.3% | -6.3% | |
Fullsize SUV | $11,344 | $11,729 | $12,343 | -3.3% | -8.1% | |
Luxury SUV | $18,631 | $19,014 | $20,423 | -2.0% | -8.8% | |
Compact Pickup | $7,158 | $7,272 | $7,694 | -1.6% | -7.0% | |
Fullsize Pickup | $11,398 | $11,362 | $11,392 | 0.3% | 0.1% | |
Total Crossovers | $12,777 | $13,084 | $13,529 | -2.3% | -5.6% | |
Compact CUV | $10,745 | $10,893 | $11,230 | -1.4% | -4.3% | |
Mid/Fullsize CUV | $15,157 | $15,592 | $16,265 | -2.8% | -6.8% | |
Source: ADESA Analytical Services. October revised. | ||||||
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