Though prices in the lanes still remained higher than the first days of summer last year, used-vehicle rates still experienced a significant downturn in June.

According to the June edition of Kontos Kommentary, wholesale prices were down 2.5 percent from May, but up 2.4 percent year-over-year. 

ADESA chief economist Tom Kontos reported the average price for a vehicle at auction in June came in at $10,192. One reason year-over-year prices are up, of course, is the ever-expanding used supply, due to the influx of lease returns hitting the market this year.

“Average wholesale used-vehicle prices fell significantly again in June relative to May, though they remained higher than year-ago levels,” said Kontos. “Besides seasonal factors, supply growth is continuing to put downward pressure on prices, though this impact remains somewhat masked by a ‘richer mix’ of higher-priced off-rental manufacturers program vehicles and off-lease units discussed in previous commentaries.”

And though used-vehicle retail sales were still relatively high this past month, numbers were down a bit from May.

According to NADA data, there were nearly 4.4 million used sales in June. That compares to 4.3 million used sales in the same month of 2014. Through June, there have been close to 18.6 million used sales, against 18.4 million in the first half of 2014.

 

More on wholesale values
 

As for wholesale price movement last month, both compact cars and the SUV model classes saw some market correction this past month, Kontos pointed out.

The compact cars saw prices drop by 4.7 percent this past month from May, which represents a 0.3-percent increase year-over-year. The segment ended the month with an average price of $6,883. This is compared to the overall average price for cars of $8,878 last month, which was down 2.3 percent from May.

The midsize cars also saw prices drop more than the average rate, with rates falling by 2.9 percent to end the month with an average price of $7,795.

The only car segments to see prices rise at all last month were the luxury car segment (up by 0.6 percent), and the full-size cars, up by a slight 0.1 percent.

“Increased supplies of compact cars played a role in softer prices for those vehicles in June,” said Kontos. “The SUV model classes also saw some correction in prices during the month, though prices remain high for SUVs on a year-over-year basis, as the fuel price environment has been favorable to larger vehicles.”

The SUV segment to see prices drop the most last month was the midsize SUVs, which experienced a drop of 6.3 percent from May to finish June with an average rate of $8,041. Compare this to the average price of trucks in the lanes last month of $11,490, which was down 2.7 percent from May.

Other underperformers included the mini SUV segment with a drop of 4.7 percent, and the fullsize SUVs, which saw prices fall by 5 percent; these segments ended the month with an average price of $13,591 and $11,421, respectively.

As far as what sellers were bringing in the most from auction sales last month, wholesale prices for used vehicles remarketed by manufactures were up 3 percent from May, but down a significant 6.9 percent year-over-year, “as off-rental program vehicles continue to be in high abundance,” said Kontos.

Fleet/lease consignor numbers were down a bit last month, with rates falling 2.6 percent from May and 1.5 percent year-over-year.

“Rental risk vehicles were partly to blame here, as a large number of older, rougher, high-mileage units were de-fleeted,” Kontos explained.

Dealers also saw prices for their sales drop by 2.6 percent versus May, but this number is up 2.7 percent year-over-year.