Hurricane Harvey landed in Texas with a week left in August, and its flooding left an immediate impact on wholesale price movements for the month, according to KAR Auction Services chief economist Tom Kontos.
According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class released on Wednesday, wholesale used-vehicle prices in August averaged $10,947. The reading represented 0.6 percent uptick compared to July and a 1.9 percent rise relative to August of last year.
“Average wholesale prices in August were once again up largely on the strength of truck prices, although another factor could be early impacts from Hurricane Harvey, which appeared to drive prices up at the end of the month, particularly in Texas,” Kontos said in his latest Kontos Kommentary.
“Luxury cars had a stand-out month, with significant average price increases on both a monthly and annual basis,” added Kontos, who is set to appear again during the National Remarketing Conference at Used Car Week, which begins on Nov. 13 in Palm Springs, Calif.
Kontos also continued his analysis of fleet and off-lease midsize cars and midsize CUVs/SUVs; units likely to have between 36,000 and 45,000 on the odometer. He found that price softening was less evident in August than in previous months when holding constant for sale type, model-year age, mileage, and model class segment.
In fact, midsize car prices were up on a year-basis as they rose by $113 to $11,667.
“Last month, we noted that midsize SUV/CUV prices were reversing their previous trend and softening more than midsize car prices, and this month the two bellwether segments moved in opposite directions. This pattern may change in the aftermath of Harvey, as truck demand in Texas should ramp up,” Kontos said. He also elaborated about this point in a video available here as well as at the top of this page.
Kontos closed his analysis by mentioning average wholesale prices for used vehicles remarketed by manufacturers climbed 4.6 percent month-over-month and up 6.5 percent year-over-year.
Prices for fleet/lease consignors were up 1.4 percent sequentially and up 2.3 percent annually.
He also mentioned average prices for dealer consignors softened by 1.2 percent versus July and jumped by 3.0 percent relative to August of last year.
|August 2017||July 2017||August 2016||Prior Month||Prior Year|
|Total All Vehicles||$10,947||$10,887||$10,738||0.6%||1.9%|
Source: ADESA Analytical Services. July data revised