KAR Auction Services chief economist Tom Kontos applauded the strategy used by commercial consignors after reviewing January wholesale price information.
According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used-vehicle prices in January averaged $10,761, representing a 1.3 percent rise compared to December but a 2.0-percent dip relative to January of last year.
Kontos pointed out that prices for all segments other than compact SUV/CUVs and compact pickups softened on a year-over-year basis.
Average wholesale prices in January fell on a year-over-year basis for the third month in a row, though they were up seasonally,” Kontos said in his latest installment of the Kontos Kommentary distributed late on Thursday.
“Auction prices for off-lease units were again a major bright spot, as upstream remarketing continues to be effective in distributing supply across multiple channels,” he continued.
According to ADESA data for January, prices for fleet/lease consignors rose 1.9 percent sequentially and 3.9 percent annually.
Along with elaborating about the wholesale scene in this online video, Kontos also shared his monthly look at vehicles that often become certified pre-owned inventory — 3-year-old midsize cars and SUV/CUVs with less than 45,000 miles.
When holding constant for sale type, model-year age, mileage, and model class segment — using criteria that characterize off-lease units — Kontos stated prices were up significantly on a year-over-year basis.
For midsize cars, prices jumped 3.5 percent or $401 to $11,867 while prices for midsize SUV/CUVs rose $107 or 0.5 percent to $20,308. Kontos added incoming supply has been skewed toward trucks which kept prices for those fleet/leases units for climbing more.
And with many portions of the country encountering frigid temperatures during the opening month of the year, Kontos said, “Retail sales were affected by severe weather conditions,” while noting that January CPO sales dropped 10.9 percent from the prior month and 1.8 percent year-over-year, according to figures from Autodata Corp.
Rounding out the latest monthly update, Kontos indicated that average wholesale prices for used vehicles remarketed by manufacturers in January slid 2.6 percent month-over-month and 2.9 percent year-over-year.
And the ADESA information for January revealed average prices for dealer consignors dipped 1.6 percent versus December and 2.1 percent relative to January of last year.
|January 2019||December 2018||January 2018||Prior Month||Prior Year|
|Total All Vehicles||$10,761||$10,620||$10,980||1.3%||-2.0%|
Source: ADESA Analytical Services.