Tom Kontos noticed seasonal movement when ADESA Analytical Services completed its monthly analysis of wholesale used-vehicle prices by vehicle model class.

ADESA determined wholesale used vehicle prices in March averaged $10,028 — a level 2.9 percent higher compared to February but 5.6 percent lower relative to the same month last year.

“Wholesale used vehicle prices rose seasonally but fell annually in March, indicating a softening overall pricing environment compared to the last three spring/tax seasons,” Kontos said.

“The softening is to be expected as used vehicle prices had risen to high levels relative to new vehicle prices and as used vehicle supplies, including those from trade-ins on higher new vehicle sales, have begun growing,” he continued.

“Still, strong retail sales of used and certified-pre-owned vehicles provided demand support that prevented prices from softening further,” Kontos went on to say.

Kontos used his latest commentary to delve deeper into the trends he’s noticing at the model class segment level.

“Used-vehicle prices seemed to emulate patterns seen in new vehicle sales data in that fullsize pickup trucks and small SUVs and crossovers had strong prices that perhaps mirrored solid demand for these vehicles at new-car dealerships,” Kontos said.

“The rebounding construction economy is most probably playing a role in higher pickup prices, while small SUVs and crossover prices are being impacted by the growing popularity of these flexible, relatively fuel-efficient and well-optioned vehicles,” he continued.

“Conversely, larger SUVs and crossovers have experienced significant year-over-year price declines through the first quarter,” he added.

Looking deeper at the March data, ADESA noticed prices for used vehicles remarketed by manufacturers moved up 2.1 percent month-over-month but slipped 2.8 percent year-over-year.

Analysts indicated prices for fleet/lease consignors ticked 5.2 percent higher sequentially but dipped 2.4 percent annually.

Furthermore, the auction company mentioned dealer consignors saw a 4.0 percent average price increase in March versus February, but a 7.8-percent downturn versus March of last year.

Kontos wrapped up his latest analysis by recapping March’s sales performances.

Based on data from CNW Research, retail used-vehicle sales were the highest for March since 2002 and were up 17.3 percent year-over-year for franchised dealers and 7.1 percent for independent dealers. 

March sales of certified used vehicles hit an all-time high, with sales of 190,065 — up 9.0 percent from March of last year and 21.1 percent from February. Autodata Corp. noted the previous high was 174,337 CPO units.

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