Agreeing with other wholesale industry analysts, ADESA’s Tom Kontos also discovered August prices softened both month-over-month and year-over-year.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by model class, wholesale prices in August averaged $9,881, which was down 1.0 percent compared to July and 1.2 percent lower than August of last year.

ADESA determined car segments appeared generally to adjust downward after price increases earlier this year when gas prices approached $4 per gallon nationally.

Kontos pointed out full-size cars, pickups and SUVs may be experiencing the opposite effect, noting their prices rose somewhat in August. He thinks it was perhaps in response to over-correction downward for higher gas prices earlier this year.

“Average wholesale prices continued to soften in August from their peak earlier this year, yet they remain at historically high levels,” Kontos acknowledged in his monthly commentary when discussing the August data.

“Much of this is seasonal along with a shifting mix of vehicles towards more dealer consigned units versus institutional vehicles,” he continued.

“Used-car supply remains tight, maintaining upward pressure on prices, although fall defleeting may be easing this tightness somewhat,” Kontos projected.

In other elements of the wholesale market, ADESA indicated manufacturers registered a 0.7-percent month-over-month price decrease and a 7.8-percent year-over-year rise.

The ADESA economist also said fleet/lease consignors experienced a 0.5-percent sequential price increase and a 0.9-percent annual decrease during August.

Elsewhere, Kontos mentioned dealer consignors saw a 3.7-percent average price decrease versus July and a 6.2-percent uptick versus August of last year.

ADESA estimated auction industry inventory levels stood at 26 days at month-end compared to 28 days last August.

“Used-vehicle supply remains tight, though less so than previously,” Kontos emphasized.

Kontos wrapped up his commentary by touching on the retail side of the business, citing CNW Research data.

Published previously by Auto Remarketing, CNW found retail used-vehicle sales in August were up 5.7 percent year-over-year for franchised dealers and 0.6 percent for independent dealers. But on a month-over-month basis, used-vehicle sales were down about 14 percent for both groups. 

Similarly, Kontos mentioned Autodata information about certified used-vehicle sales in August, which were 3.0 percent lower versus July, but 3.0 percent higher than the same month a year ago.

According to Edmunds, Kontos said average new-vehicle incentives in August stayed relatively flat with July at $2,387.

More analysis of the August movement in the wholesale market published by Auto Remarketing can be found here.