OPENLANE: Wholesale Prices Trend Upward at End of Month

By Joe Overby, Staff Writer
December 07, 2009

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MENLO PARK, Calif. — Following a slim decline at the end of October, auction prices during November were fairly stable throughout the month and actually showed minor gains in the final few weeks of the month, according to the latest OPENLANE Market Index.

Showing the most strength in the final two weeks of the month were trucks, which climbed 8 percentage points from week two to week four after beginning the month with a slight drop.

"Despite the hike, overall November levels came in 1 percentage point below October," officials pointed out.

Car prices were down marginally at the start of the month before hitting a peak in the final week to complete the month 2 percentage points ahead of October.

Meanwhile, minivans finished the month 8 percentage points behind the prior month, as their prices declined in the first half of November and reached a plateau in the final half.

At the start of the month, SUV prices were stable. Then, they hit an apex in the final week. Prices finished the month higher than October's levels.

Continuing on, OPENLANE also looked at pricing trends by model year, comparing one- and two-year-old models from 2009 with how one- and two-year-old vehicles performed in November 2008.

During November, prices for 2008 model-year units were ahead of the January 2009 baseline for the first time so far in 2009. Comparatively, examining last year's data, 2007 model-year vehicles hit a crest in September 2008 then trended downward for the remainder of the year and finished 7 points behind the January 2008 baseline.

Meanwhile, prices on 2007 model-year vehicles have been ahead of the January 2009 baseline for the entire year, and climbed 2 percentage points last month.

Conversely, prices two-year-old units (2006 model-year) in 2008 were beneath the baseline for every month of the year except September. They wound up 22 percentage points off the baseline.

Examining aged vehicles (four to five years old) this year, prices for 2005 model-year units showed a "sharp" decline in November while 2004 models were ahead of the January baseline despite a modest decline from the prior month.

For the first few months of last year, 2005 model-year and older vehicles were either at the same level or modestly ahead of the January baseline. However, they would eventually hit a downturn and finished more than 20 percentage points behind the baseline.

Moving on to discuss dealer interest, cars were ahead of November 2008 levels by 4 percentage points, although they were flat from the prior month.

There was a "deep decline" in dealer interest in minivans from October, but interest was still up 24 percentage points year-over-year.

Interest in SUVs was up from the prior month, and climbed slightly ahead of year-ago numbers.

Trucks saw a 3-point decline in dealer interest from October and a 27-point drop from November 2008.

Comparing different model years, OPENLANE noted that interest in 2007 model-year vehicles hit a peak in November, as it continued the ascent that began in June. Dealer interest is 95 percentage points ahead of the January baseline.

Meanwhile, last year, 2006 models saw a hike in dealer interest that started in June and hit an apex in December.

For 2006 model-year and older units last month, dealer interest fell. Similarly, 2005 models and older vehicles saw a decline in dealer interest towards the final quarter of 2008, officials stated.

OPENLANE Runs Masters Incentive

In other news, for the next three months (December, January and February), OPENLANE is offering a special incentive program where buyers can win a trip for two to the 2010 Masters golf tournament in Augusta, Ga.

To qualify, dealers can either:

—Buy at least three non-grounded vehicles on OPENLANE.com Open Auction in each month of December, January and February.

—Or, buy a total of least 15 non-grounded units between December and February on OPENLANE.com Open Auction.

The winner will receive two Masters Tournament main event badges for two days, two nights of deluxe accommodations as well as round-trip airfare for two.

OPENLANE said the winner will be randomly selected by March 10.

The purchases must be non-grounding dealer vehicle sales on OPENLANE.com Open Auction. Dealers are also required to pay full buy fees to qualify. One entry is allowed per dealer. Other restrictions may apply. Offer period is from Dec. 1 through Feb. 28.

OPENLANE has several other December offers, as well. For more information on these, visit www.openlane.com/promotions.html.

Auction/Wholesale