Kontos explains how changing volume mix left mark on August prices
More trucks and SUVs moved down the lanes in August, and KAR Auction Services chief economist Tom Kontos detailed how that change in volume mix impacted wholesale prices.
According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, wholesale used-vehicle prices in August averaged $11,244, which was 1.8% lower compared to July but 1.8% higher relative to August.
Kontos noted all segments showed month-over-month declines in average prices except full-size vans and full-size SUV/crossovers.
“Average wholesale prices in August fell relative to July but remained up on a year-over-year basis,” Kontos said in his latest edition of the Kontos Kommentary released this week.
“The year-over-year price growth was due to the strength and growing share of truck-segment sales, as car prices fell on a monthly and annual basis overall, though they remained up for off-lease units,” he added.
Kontos elaborated about prices moving higher on a year-over-year basis for both midsize cars and midsize SUV/CUVs that likely are coming off of a lease. Kontos dissected the price data by holding constant for sale type, model-year age, mileage, and model class segment — using criteria that characterize off-lease units.
As a result, prices for those particular midsize cars climbed 1.7% or $211 to $12,671, while prices for those specific midsize SUV/CUVs rose 1.5% or $320 to $21,252.
Elsewhere in the wholesale arena in August, Kontos noted average wholesale prices for used vehicles remarketed by manufacturers jumped 2.4% month-over-month and 5.3% year-over-year.
Kontos mentioned prices for fleet/lease consignors softened 1.5% sequentially but edged up 1.2% annually.
Finally, Kontos added that average prices for dealer consignors in August declined 2.0% versus July but inched up 0.2% relative to August of last year.
| Average | Price | ($/Unit) | Latest | Month Versus | |
| August 2019 | July 2019 | August 2018 | Prior Month | Prior Year | |
| Total All Vehicles | $11,244 | $11,452 | $11,048 | -1.8% | 1.8% |
| Total Cars | $8,465 | $8,654 | $8,692 | -2.2% | -2.6% |
| Compact Car | $6,530 | $6,609 | $6,481 | -1.2% | 0.8% |
| Midsize Car | $7,312 | $7,444 | $7,590 | -1.8% | -3.7% |
| Full-size Car | $7,592 | $7,886 | $7,510 | -3.7% | 1.1% |
| Luxury Car | $13,080 | $13,347 | $13,615 | -2.0% | -3.9% |
| Sporty Car | $14,219 | $14,673 | $14,367 | -3.1% | -1.0% |
| Total Trucks | $13,382 | $13,618 | $13,040 | -1.7% | 2.6% |
| Minivan | $8,118 | $8,404 | $8,222 | -3.4% | -1.3% |
| Full-size Van | $13,748 | $13,082 | $13,784 | 5.1% | -0.3% |
| Compact SUV/CUV | $10,923 | $11,173 | $10,765 | -2.2% | 1.5% |
| Midsize SUV/CUV | $11,548 | $11,774 | $11,060 | -1.9% | 4.4% |
| Full-size SUV/CUV | $14,248 | $14,084 | $13,370 | 1.2% | 6.6% |
| Luxury SUV/CUV | $18,465 | $18,839 | $18,491 | -2.0% | -0.1% |
| Compact Pickup | $11,080 | $11,345 | $10,228 | -2.3% | 8.3% |
| Full-size Pickup | $17,061 | $17,479 | $16,638 | -2.4% | 2.5% |
Source: ADESA Analytical Services.
