Another Silver Lining Amid Slower Used-Car Sales
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CARMEL, Ind. –
So, used-vehicle sales in June were not as strong as they were earlier this spring. But, as ADESA’s Tom Kontos points out, new-car sales were “great.”
And that means more trade-ins for dealers, which tends to bode well on the used-car side of their stores.
“There was a bit of a respite in year-over-year retail used vehicle sales growth after strong months in March, April and May,” Kontos said in his latest monthly commentary on the used-car market.
“June was a great month for new-vehicle sales, however, and the associated trade-in activity should result in some attractive retail units along with additional wholesale supply,” he continued.
Price-wise, the dollars that used cars were fetching in wholesale channels fell a little more month-over-month than they typically do at this point of the year, Kontos pointed out. But June’s wholesale values were still beating year-ago levels by a wide margin.
Specifically, wholesale prices averaged $10,004 for the month, which was 4.7 percent above June 2013 levels and down 3.1 percent month-over-month.
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Kontos would note that prices for nearly all model classes were down from May. The most significant depreciation was for midsize SUVs, which were off 10.6 percent.
Year-over-year, it was the opposite scenario. All but two of the segments in ADESA’s data set showed increased prices, with full-size vans leading the pack at 14.8-percent growth.
Kontos also offered a breakdown based on seller type.
“Prices for used vehicles remarketed by manufacturers were actually up 0.6 percent month-over-month (for those units that were not no-saled), though down 0.1 percent year-over-year, reflecting volume pressure. Prices for fleet/lease consignors were down 3.9 percent sequentially and up 2.5 percent annually. Dealer consignors saw a 2.3-percent average price decrease versus May, and a 3.4-percent uptick versus June 2013," he reported.