July prices up 4.9% as stop-sales complicate matters
Like dealers, executive vice president and chief economist of ADESA Analytical Services Tom Kontos is grappling with the challenge of stop-sales, too.
According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in July averaged $10,362 — down 2.0 percent compared to June but up 4.9 percent relative to July of last year. Kontos explained the year-over-year rise was again due to the strength of truck prices, whereas car prices fell on an annual basis. Most segments experienced seasonal month-over-month declines.
“Average wholesale values fell again seasonally in July, but they remain up on a year-over-year basis largely because of the continued price strength of trucks and continued growth of younger, lower-mileage, higher-priced off-lease supply,” Kontos said in his latest Kontos Kommentary that accompanied the latest wholesale price analysis from KAR Auction Services.
“Recalls also played a role in the overall positive price performance, so it is not clear how wholesale prices might have fared absent the supply curtailments stop-sales caused,” Kontos continued. “Nevertheless, retail used vehicle sales — especially near-record CPO sales — remain strong, providing demand-side support for wholesale values.”
ADESA indicated average wholesale prices for used vehicles remarketed by manufacturers moved higher by 0.6 percent month-over-month and 10.2 percent year-over-year. Kontos noted automakers sold almost 20 percent fewer units this year than they did last July.
“Recalls are playing a major role in this reduction, as vehicles are ‘stop-saled,’ awaiting parts and/or OKs from manufacturers for sale,” he added.
ADESA also noted prices for fleet/lease consignors softened by 2.5 percent sequentially but rose 3.1 percent annually, as these consignors sell “more younger, lower-mileage off-lease units than they did last year,” according to Kontos.
Furthermore, Kontos pointed out dealer consignors registered a 1.1-percent decrease versus June, but a 5.3-percent increase relative to July of last year.
And as he referenced earlier, Kontos recapped that July certified pre-owned sales were up 4.8 percent month-over-month and up 5.6 percent year-over-year, according to figures from Autodata Corp. that Auto Remarketing also highlighted here.
Kontos provided a video commentary as well that can be seen at the top of this page or by going here.
Average | Price | ($/Unit) | Latest | Month Versus | |
July 2016 | June 2016 | July 2015 | Prior Month | Prior Year | |
Total All Vehicles | $10,362 | $10,571 | $9,876 | -2.0% | 4.9% |
Total Cars | $8,326 | $8,562 | $8,511 | -2.8% | -2.2% |
Compact Car | $6,325 | $6,465 | $6,928 | -2.2% | -8.7% |
Midsize Car | $7,520 | $7,658 | $7,501 | -1.8% | 0.3% |
Full-size Car | $6,984 | $7,367 | $7,852 | -5.2% | -11.1% |
Luxury Car | $12,844 | $13,078 | $12,575 | -1.8% | 2.1% |
Sporty Car | $13,653 | $14,274 | $12,852 | -4.3% | 6.2% |
Total Trucks | $12,447 | $12,595 | $11,414 | -1.2% | 9.1% |
Minivan | $7,728 | $7,830 | $6,793 | -1.3% | 13.8% |
Full-size Van | $12,823 | $12,500 | $12,611 | 2.6% | 1.7% |
Compact SUV/CUV | $10,725 | $10,882 | $10,219 | -1.4% | 5.0% |
Midsize SUV/CUV | $11,054 | $11,118 | $9,868 | -0.6% | 12.0% |
Full-size SUV/CUV | $12,828 | $13,657 | $11,483 | -5.9% | 11.9% |
Luxury SUV/CUV | $18,449 | $18,842 | $17,189 | -2.1% | 7.3% |
Compact Pickup | $8,727 | $8,718 | $7,938 | 0.1% | 9.9% |
Full-size Pickup | $15,855 | $15,836 | $14,728 | 0.1% | 7.6% |
Source: ADESA Analytical Services. June revised.