CARMEL, Ind. -

KAR Auction Services chief economist Tom Kontos used a term to describe December wholesale price moves that dealership personnel who have a military background might know from their days of basic training and daily marches.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, wholesale prices in December averaged $10,642, which was down 0.3 percent compared to November but up 3.9 percent relative to December of 2015. 

Analysts determined truck prices — which fell 0.6 percent month-over-month — led the overall monthly decline, which they explained was consistent with rises in gasoline prices during the month that some dealers may have seen as a longer term trend. 

“Wholesale prices did a bit of an about-face in December, as truck price softening, perhaps influenced by higher gasoline prices, drove down overall results,” Kontos said as a part of his monthly Kontos Kommentary, which also can be seen online here as well as the video window at the top of the page.

“New-vehicle incentive activity also remained high, which, along with higher fleet sales, helped the year close out with a new record in sales but put downward pressure on wholesale values,” he continued. “Fortunately, certified pre-owned used-vehicle sales also hit a new record, helping absorb growing used-vehicle supply and limiting the negative impact to wholesale prices.

“Particularly hard-hit were prices for full-size and luxury SUV/CUV models, as well as full-size vans,” Kontos went on to say. “Passenger car segments, on the other hand, registered price gains during the month, with only luxury and sporty cars (which tend to be less fuel-efficient) showing declines.

ADESA indicated average wholesale prices for used vehicles remarketed by manufacturers were down 4.2 percent month-over-month and down 0.4 percent year-over-year.

The company also noticed prices for fleet/lease consignors dropped by 1.5 percent sequentially but ticked up 1.0 percent on a year-over-year basis.

Analysts added that average prices in December for dealer consignors were flat versus November but 1.1 percent higher relative to December of 2015.

As previously reported by Auto Remarketing, Kontos also mentioned that December CPO sales were at record levels and were up 14.7 percent month-over-month and 2.4 percent year-over-year, according to figures from Autodata.  For the year, CPO sales increased 3.5 percent, setting a new record at 2.64 million units.

Kontos closed with two other metrics.

Average new vehicle incentives were again above $3,000 and were nearly $1,000 higher than year-ago levels based on Edmunds data.

Fleet sales were up by 122,364 units and totaled almost 2.8 million in 2016, according to Bobit Business Media data.  This helped total new-vehicle sales top the 2015 record of 17.5 million, as 2016 sales were up by 56,211, according to the Automotive News Data Center.

ADESA Wholesale Used-Vehicle Price Trends
   Average  Price  ($/Unit)  Latest  Month Versus
   Dec. 2016  Nov. 2016  Dec. 2015  Prior Month  Prior Year
           
 Total All Vehicles  $10,642  $10,672  $10,244  -0.3%  3.9%
           
 Total Cars  $8,576  $8,472  $8,629  1.2%  –0.6%
 Compact Car  $6,413  $6,314  $6,535  1.6%  -1.9%
 Midsize Car  $7,773  $7,446  $7,679  4.4%  1.2%
 Full-size Car  $7,971  $7,656  $7,484  4.1%  6.5%
 Luxury Car  $13,049  $13,182  $13,213  -1.0%  -1.2%
 Sporty Car  $12,748  $13,064  $13,339  -2.4%  -4.4%
           
 Total Trucks  $12,645  $12,726  $11,942  -0.6%  5.9%
 Minivan  $8,897  $8,623  $8,448  3.2%  5.3%
 Full-size Van  $11,317  $12,320  $11,513  -8.1%  -1.7%
 Compact SUV/CUV  $10,481  $10,439  $10,264  0.4%  2.1%
 Midsize SUV/CUV  $11,336  $11,473  $10,284  -1.2%  10.2%
 Full-size SUV/CUV  $14,379  $14,607  $12,603  -1.6%  14.1%
 Luxury SUV/CUV  $18,141  $18,554  $17,925  -2.2%  1.2%
 Compact Pickup  $8,757  $8,755  $8,229  0.0%  6.4%
 Full-size Pickup  $15,624  $15,548  $14,825  0.5%  5.4%

Source: ADESA Analytical Services. November revised