CARMEL, Ind. –

Like dealers, executive vice president and chief economist of ADESA Analytical Services Tom Kontos is grappling with the challenge of stop-sales, too.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in July averaged $10,362 — down 2.0 percent compared to June but up 4.9 percent relative to July of last year. Kontos explained the year-over-year rise was again due to the strength of truck prices, whereas car prices fell on an annual basis. Most segments experienced seasonal month-over-month declines.

“Average wholesale values fell again seasonally in July, but they remain up on a year-over-year basis largely because of the continued price strength of trucks and continued growth of younger, lower-mileage, higher-priced off-lease supply,” Kontos said in his latest Kontos Kommentary that accompanied the latest wholesale price analysis from KAR Auction Services.

“Recalls also played a role in the overall positive price performance, so it is not clear how wholesale prices might have fared absent the supply curtailments stop-sales caused,” Kontos continued. “Nevertheless, retail used vehicle sales — especially near-record CPO sales — remain strong, providing demand-side support for wholesale values.”

ADESA indicated average wholesale prices for used vehicles remarketed by manufacturers moved higher by 0.6 percent month-over-month and 10.2 percent year-over-year. Kontos noted automakers sold almost 20 percent fewer units this year than they did last July.

“Recalls are playing a major role in this reduction, as vehicles are ‘stop-saled,’ awaiting parts and/or OKs from manufacturers for sale,” he added.

ADESA also noted prices for fleet/lease consignors softened by 2.5 percent sequentially but rose 3.1 percent annually, as these consignors sell “more younger, lower-mileage off-lease units than they did last year,” according to Kontos.

Furthermore, Kontos pointed out dealer consignors registered a 1.1-percent decrease versus June, but a 5.3-percent increase relative to July of last year.

And as he referenced earlier, Kontos recapped that July certified pre-owned sales were up 4.8 percent month-over-month and up 5.6 percent year-over-year, according to figures from Autodata Corp. that Auto Remarketing also highlighted here.

Kontos provided a video commentary as well that can be seen at the top of this page or by going here.

ADESA Wholesale Used-Vehicle Price Trends
   Average  Price  ($/Unit)  Latest  Month Versus
   July 2016  June 2016  July 2015  Prior Month  Prior Year
           
 Total All Vehicles  $10,362  $10,571  $9,876  -2.0%  4.9%
           
 Total Cars  $8,326  $8,562  $8,511  -2.8%  -2.2%
 Compact Car  $6,325  $6,465  $6,928  -2.2%  -8.7%
 Midsize Car  $7,520  $7,658  $7,501  -1.8%  0.3%
 Full-size Car  $6,984  $7,367  $7,852  -5.2%  -11.1%
 Luxury Car  $12,844  $13,078  $12,575  -1.8%  2.1%
 Sporty Car  $13,653  $14,274  $12,852  -4.3%  6.2%
           
 Total Trucks  $12,447  $12,595  $11,414  -1.2%  9.1%
 Minivan  $7,728  $7,830  $6,793  -1.3%  13.8%
 Full-size Van  $12,823  $12,500  $12,611  2.6%  1.7%
 Compact SUV/CUV  $10,725  $10,882  $10,219  -1.4%  5.0%
 Midsize SUV/CUV  $11,054  $11,118  $9,868  -0.6%  12.0%
 Full-size SUV/CUV  $12,828  $13,657  $11,483  -5.9%  11.9%
 Luxury SUV/CUV  $18,449  $18,842  $17,189  -2.1%  7.3%
 Compact Pickup  $8,727  $8,718  $7,938  0.1%  9.9%
 Full-size Pickup  $15,855  $15,836  $14,728  0.1%  7.6%

Source: ADESA Analytical Services. June revised.