CARMEL, Ind. -

ADESA noticed dealers are seeing some post-tax season price relief in the lanes, but the amount managers are paying for inventory remains higher than a year ago.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, prices in May averaged $10,321 — down 1.5 percent compared to April but up 5.4 percent relative to May of last year.

In addition to explaining that truck prices continue to generally hold firmer than car prices, ADESA’s Tom Kontos also shared how consumer appetitie for certified pre-owned cars is affecting volume and price metrics at auction.

“Wholesale prices in May softened from their April spring-market/tax-season peak, although they remain significantly above year-ago levels,” Kontos said in his monthly commentary issued this week.

“Retail demand, particularly for ‘certifiable’ units for record CPO sales, helped absorb off-rental volume and growing off-lease supply without significant price declines,” he continued. “However, there was some hesitancy from a few sellers to accept May’s lower prices, and this was reflected in low conversion rates for those consignors.

“May’s downturn could be a precursor to further softening, especially in areas such as the Northeast, where the growth in off-lease supply is expected to be concentrated,” Kontos went on to say.

ADESA’s latest analysis also showed that prices for used vehicles remarketed by manufacturers softened by 1.4 percent month-over-month but rose 5.0 percent year-over-year.

“More off-rental program units entered the market, many of which were no-sold,” Kontos said.

ADESA also mentioned prices for fleet/lease consignors dipped 1.5 percent sequentially but climbed 4.2 percent annually.

“More off-rental risk units entered the market (although in many cases these, too, were no-sold) along with more off-lease vehicles,” Kontos said.

Furthermore, ADESA pointed out dealer consignors saw a 2.5-percent average price decrease versus April and a 3.7-percent uptick versus May of last year.

“They wholesaled units obtained in part from trade-ins generated via May’s strong new vehicle sales,” Kontos said.

Kontos wrapped up his commentary by recapping May sales in the used space.

He noted that based on data from CNW research, retail used vehicle sales in May were up 12.3 percent month-over-month and 3.9 percent year-over-year. Kontos also highlighted Autodata Corp. figures that determined sales of certified pre-owned vehicles hit a record of 207,371 units in May, up 7.4 percent versus April and up 10.9 percent from the prior year.

ADESA's Wholesale Used-Vehicle Price Trends
  Average Prices ($/Unit) Latest Month Versus:
  May 14 Apr-14 May 13 Prior Month Prior Year
           
Total All Vehicles $10,321 $10,481 $9,796 -1.5% 5.4%
           
Total Cars $9,230 $9,373  $8,934 -1.5% 3.3%
Compact Car $7,266 $7,470 $7,087 -2.7% 2.5%
Midsize Car $8,503 $8,613 $8,192 -1.3% 3.8%
Fullsize Car $7,185 $7,296 $7,240 -1.5% -0.8%
Luxury Car $12,677 $12,563 $12,224 0.9% 3.7%
Sporty Car $13,149 $13,427 $12,849 -2.1% 2.3%
           
Total Trucks $10,892 $10,918 $9,750 -0.2% 11.7%
Mini Van $7,299 $7,310 $6,558 -0.2% 11.3%
Fullsize Van $11,243 $10,921 $9,872 2.9% 13.9%
Mini SUV $12,991 $13,308 $11,053 -2.4% 17.5%
Midsize SUV $8,390 $8,378 $7,164 0.1% 17.1%
Fullsize SUV $10,896 $10,723 $10,580 1.6% 3.0%
Luxury SUV $19,778 $19,582 $18,673 1.0% 5.9%
Compact Pickup $7,705 $7,777 $7,441 -0.9% 3.6%
Fullsize Pickup $13,305 $13,450 $11,810 -1.1% 12.7%
           
Total Crossovers $12,821 $13,222 $12,936 -3.0% -0.9%
Compact CUV $11,589 $11,977 $11,352 -3.2% 2.1%
Mid/Fullsize CUV $14,093 $14,478 $14,537 -2.7% -3.1%