For the first time this year, the average monthly wholesale used-vehicle price fell below $10,000, as July continued a string of heavy sequential price drops that has now reached three consecutive months.

That’s according to the July edition of Kontos Kommentary, where ADESA chief economist Tom Kontos attributed the continued price drops to increasing supply.

“Supply growth continues to put downward pressure on prices despite strong demand driven by relatively high levels of retail used vehicles,” Kontos said in the report, “especially for certified pre-owned vehicles.”

To be exact, wholesale used-vehicle prices for July came in at an average of $9,878, a 3-percent drop from June but a 1.4 percent increase relative to July 2014, according to the report.

According to NADA data, July resulted in an 11.6-percent year-over-year increase in used-vehicle sales by franchised dealers and a 15-percent increase for independent dealers. Based on the numbers from Autodata Corp., CPO sales were also up 4.2 percent month-over-month and 11 percent year-over-year.

Kontos also pointed to the trend of lower fuel prices continuing to aid the prices of pickups, which were up 2.2 percent month-over-month. 

That being said, beneficial fuel prices haven’t shielded every larger-vehicle segment from decline.

According to data provided by ADESA Analytical Services for the month of July, luxury SUVs took the biggest month-over-month hit, taking a 10-percent dip from June  and a 7.9-percent decline from July 2014. 

Compact cars saw the largest month-over-month increase in prices at auctions in July, increasing by 3.1 percent.

As for seller segments, Kontos said vehicles remarketed by OEMs saw a steep decline in July.

“Average wholesale prices for used vehicles remarketed by manufacturers were down 10.2 percent month-over-month and 14.7 percent year-over-year, as prices for off-rental program vehicles continue to be negatively affected by abundant supply,” Kontos said. “The same goes for off-rental risk vehicles.

“Prices for fleet/lease consignors were up a modest 0.3 percent sequentially and down 0.2 percent annually,” he added. “Dealer consignors saw a 7.6-percent price decrease versus June and a 1.9-percent decrease relative to July 2014.”