CARMEL, Ind. -

Perhaps you, too, finished 2019 a bit tired; the culmination of a year filled with automotive activities that left you feeling fatigued.

Well, KAR Global chief economist Tom Kontos explained how the wholesale market might have sustained “fatigue” by the time this past year ended, as well.

According to KAR Global Analytical Services’ monthly analysis of wholesale used-vehicle prices by model class released on Tuesday, analysts found that wholesale prices in December averaged $10,822 — down 0.9% compared to November but up 1.9% relative to December 2018.

Kontos indicated 2019 ended with average wholesale prices dropping for the seventh month in a row. 

“Though some of this decline reflects seasonal patterns, it may also be indicative of used vehicle market ‘fatigue’ after many months of admirably withstanding used-vehicle supply growth without significant deterioration in values,” he said in the latest installment of the Kontos Kommentary.

KAR Global’s information showed average prices for cars softened year-over-year, but overall average truck prices moved higher.

“Compact SUV/crossover prices appear to be softening after several years of strong new-vehicle sales and model proliferation,” Kontos said.

As he does regularly, Kontos elaborated about 3-year-old midsize cars and midsize SUV/CUVs with less than 45,000 miles — using criteria that characterize off-lease units. When holding constant for sale type, model year, mileage and model class segment, Kontos discovered prices jumped in both categories.

For those particular midsize cars, prices jumped 5.6% or $616 to $11,601, whole for those specific midsize SUV/CUVs, prices rose by $325 or 1.7% to $19,298.

Looking elsewhere in the wholesale market, KAR Global found that average wholesale prices for used vehicles remarketed by manufacturers in December slid 2.3% month-over-month but climbed 7.4% year-over-year. 

Analysts noticed prices for fleet/lease consignors in December ticked up 1.2% sequentially and 4.6% annually. 

Furthermore, KAR Global reported average prices for dealer consignors edged 0.3% higher in December versus November but remained flat relative to December 2018.

Kontos closed his latest update by recapping retail activities.

Based on National Automobile Dealers Association data, Kontos indicated retail used-vehicle sales by franchised and independent dealers decreased 11.2% month-over-month and 1.7% year-over-year in December. On a full-year basis, he added that sales moved 1.6% higher.

As previously reported by Auto Remarketing, Kontos also mentioned that December certified pre-owned sales edged 0.7% lower from the prior month but climbed 5.3% higher year-over-year, according to figures from Autodata.  On a full-year basis, Kontos pointed out CPO sales in 2019 increased by 4.1% versus 2018.

ADESA Wholesale Used-Vehicle Price Trends
   Average  Price  ($/Unit)  Latest  Month Versus
   December 2019  November 2019  December 2018  Prior Month  Prior Year
           
 Total All Vehicles  $10,822  $10,924  $10,620  -0.9%  1.9%
           
 Total Cars  $8,130  $8,165  $8,337  -0.4%  -2.5%
 Compact Car  $6,068  $6,096  $6,398  -0.5%  -5.2%
 Midsize Car  $7,131  $7,052  $7,252  1.1%  -1.7%
 Full-size Car  $7,241  $7,650  $8,071  -5.3%  -10.3%
 Luxury Car  $12,700  $12,762  $12,786  -0.5%  -0.7%
 Sporty Car  $13,496  $13,536  $13,034  -0.3%  3.5%
           
 Total Trucks  $12,872  $12,976  $12,595  -0.8%  2.2%
 Minivan  $7,568  $7,874  $8,306  -3.9%  -8.9%
 Full-size Van  $11,921  $12,618  $11,122  -5.5%  7.2%
 Compact SUV/CUV  $10,449  $10,592  $10,991  -1.3%  -4.9%
 Midsize SUV/CUV  $11,275  $11,753  $10,980  -4.1%  2.7%
 Full-size SUV/CUV  $13,558  $13,738  $13,306  -1.3%  1.9%
 Luxury SUV/CUV  $18,336  $18,162  $17,686  1.0%  3.7%
 Compact Pickup  $10,899  $10,999  $9,464  -0.9%  15.2%
 Full-size Pickup  $15,996  $15,948  $15,351  0.3%  4.2%

Source: KAR Global Analytical Services.