CARMEL, Ind. -

Tom Kontos called the movement an “anomaly” when ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class showed that used values in February softened on sequential basis.

ADESA pinpointed the average at $10,202, representing a 0.5-percent dip compared to January, but just a modest 0.3-percent uptick relative to February of last year.

Kontos mentioned prices for cars and minivans continued to show year-over-year price declines, while SUVs/crossovers and pickups posted gains. He added that ADESA Analytical Services’ Black Book-based segmentation scheme has been revised to combine crossovers into the SUV classes, as the distinction between them has blurred.

“To me, this is another indication that growing supply are causing wholesale prices to soften,” Kontos said in a video commentary accompanying the latest ADESA data.

“February was a departure from the normal seasonal patterns that we usually see where February is a buildup toward the spring tax season in March and April where results generally favorably for wholesale prices and retail sales of used cars,” the ADESA economist continued in the video that can be viewed at the top of this page.

“We’ll be on the lookout to see if these trends reverse,” Kontos went on to say.

Kontos mentioned average wholesale prices for used vehicles remarketed by manufacturers softened by 0.5 percent month-over-month but rose by 1.6 percent year-over-year.

ADESA also noticed prices for fleet/lease consignors dropped 2.0 percent sequentially and 1.8 percent annually “as fleet/lease sales volumes rose significantly versus prior year partly as a result of higher off-lease volumes.”

The latest data also indicated dealer consignors saw a 0.5-percent price decrease versus January but a 3.2-percent increase relative to February of last year.

Kontos closed by noting data from the National Automobile Dealers Association highlighted an 11.9 percent year-over-year increase in retail used vehicle sales by franchised dealers and a 15.5 percent increase for independent dealers in February

“But both were down significantly on a month-over-month basis for the second month in a row,” Kontos said.

He also cited figures from Autodata Corp. that showed February certified pre-owned sales moved higher by 10.8 percent month-over-month and 7.1 percent year-over-year, “more than making up for January’s declines.”

ADESA Wholesale Used-Vehicle Price Trends
   Average  Price  ($/Unit)  Latest  Month Versus
   February 2016  January 2016  February 2015  Prior Month  Prior Year
           
 Total All Vehicles  $10,202  $10,254  $10,167  –0.5%  1.1%
           
 Total Cars  $8,506  $8,535  $9,074  –0.3%  -6.3%
 Compact Car  $6,650  $6,531  $7,271  1.8%  -8.5%
 Midsize Car  $7,667  $7,742  $8,100  -1.0%  -5.3%
 Full-size Car  $7,378  $7,485  $8,027  -1.4%  -8.1%
 Luxury Car  $12,899  $12,858  $13,493  0.3%  -4.4%
 Sporty Car  $12,893  $12,730  $12,693  1.3%  1.6%
           
 Total Trucks  $12,030  $12,093  $11,409  -0.5%  5.4%
 Minivan  $7,262  $7,141  $7,888  1.7%  -7.9%
 Full-size Van  $12,429  $12,120  $12,155  2.6%  2.3%
 Compact SUV/CUV  $10,615  $10,568  $10,542  0.4%  0.7%
 Midsize SUV/CUV  $10,663  $10,758  $10,047  -0.9%  6.1%
 Full-size SUV/CUV  $12,107  $12,265  $11,422  -1.3%  6.0%
 Luxury SUV/CUV  $17,758  $17,923  $17,719  -0.9%  0.2%
 Compact Pickup  $8,370  $8,268  $7,683  1.2%  8.9%
 Full-size Pickup  $15,298  $15,209  $13,777  0.6%  11.0%

Source: ADESA Analytical Services. January revised.
Note: Black Book revised segmentation to combine crossovers into the SUV classes as the distinction between them has blurred.