Along with touching on the latest certified pre-owned sales data he could share, KAR Auction Services chief economist Tom Kontos used a gardening analogy to describe how the spring wholesale market reached “full bloom in April.”
According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, analysts reported that wholesale used vehicle prices in April averaged $11,489, up 3.6% compared to March and up 3.4% relative to April of last year.
Kontos noted full-size cars and minivans were the only segments that did not show month-over-month average price increases, and their declines were modest.
The spring/tax season market reached full bloom in April as average wholesale prices reached what will likely be peak or near-peak levels for the year based on historical seasonal trends,” he said in the latest Kontos Kommentary released just before Memorial Day weekend.
“Car prices moved in parity with truck prices overall on a month-over-month basis and showed particular strength in the off-lease segment at physical auctions,” Kontos added.
Kontos continued his regular analysis by revisiting trends involving units that typically can be within a dealership’s CPO inventory.
When holding constant for sale type, model-year age, mileage, and model class segment — using criteria that characterize off-lease units — Kontos discovered prices jumped significantly on a year-over-year basis for midsize cars but dropped substantially for midsize SUV/CUVs.
Prices for those particular midsize cars climbed 4.5% or $542 to $12,648, while prices for those specific midsize SUV/CUVs softened 1.3% or $279 to $20,902.
Kontos went on to mention more ADESA data from April that revealed average wholesale prices for used vehicles remarketed by manufacturers rose 2.9% month-over-month but slid 1.6% year-over-year.
Prices for fleet/lease consignors increased 4.4% sequentially and 4.3% annually.
Average prices for dealer consignors moved 3.6% higher versus March and 1.1% relative to last April.
Finally, based on Edmunds data, Kontos recapped that retail used-vehicle sales by franchised dealers rose 3.8% year-over-year in April and 2.4% year-to-date.
He went on to point out April CPO sales dropped 12.6% from the prior month’s record levels but edged 1.3% higher year-over-year, according to figures from Autodata.
On a year-to-date basis, CPO sales are up 1.7% versus last year, Kontos concluded.
|April 2019||March 2019||April 2018||Prior Month||Prior Year|
|Total All Vehicles||$11,489||$11,095||$11,116||3.6%||3.4%|
Source: ADESA Analytical Services.