ADESA spots 6% sequential wholesale price lift
Perhaps the sprouts of a springtime wholesale price rise now really are starting to germinate.
According to ADESA Analytical Services’ monthly analysis of wholesale vehicle prices by vehicle model class, used-car prices in March averaged $10,815. The figure represented a 6.0-perent increase compared to February and a 1.7-percent uptick relative to March of last year.
Continuing a now-familiar pattern, ADESA chief economist Tom Kontos pointed out car prices on a year-over-year basis were down, while truck prices were up, particularly for full-size SUVs, CUVs, and pickups.
“Signs of the traditional spring tax-season market appeared in March as average wholesale prices rose both on a sequential and annual basis,” Kontos said in his monthly Kontos Kommentary that accompanied the latest data.
“Yet price softening driven by supply growth remains a visible undercurrent as totals and averages are broken down into model class, sale type and age buckets,” he added.
Looking deeper into the March data, ADESA reported that average wholesale prices for used vehicles remarketed by manufacturers were up 1.9 percent month-over-month but down 1.0 percent year-over-year.
Analysts noticed prices for fleet/lease consignors rose 6.8 percent sequentially but dropped 2.4 percent annually.
Within that category, Kontos mentioned off-rental risk units had “significant” year-over-year price declines despite lower average mileage.
“Ditto for prices of 3-model-year-old vehicles, a proxy for off-lease vehicles,” he went on to say.
ADESA also pointed out that 2- and 4-year-old vehicles also saw “major” year-over-year price declines, as did older models.
Finally, the auction company indicated dealer consignors saw a 4.1-percent price increase versus February and a 1.5-percent increase relative to March of last year.
Kontos offered more assessment about the March wholesale price data in the video available at the top of this page.
|March 2016||February 2016||March 2015||Prior Month||Prior Year|
|Total All Vehicles||$10,815||$10,202||$10,639||6.0%||1.7%|
Source: ADESA Analytical Services. February revised.