Spring officially ends in June, and KAR Auction Services chief economist Tom Kontos explained the wholesale market wrapped up its spring season “appropriately” during the same month.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, Kontos reported that wholesale used-vehicle prices in June averaged $11,478 — down 1.6% compared to May but up 5.4% relative to June of last year. 

As part of his latest Kontos Kommentary, the KAR expert pointed out that prices for cars and SUV/crossovers dropped most, while van and pickup truck prices held up better.

The 2019 spring/tax season used vehicle market came to an end appropriately in June as average wholesale prices fell on a month-over-month basis, although they were up year-over-year,” Kontos said.

“Solid retail used-vehicle sales again provided demand-side support for wholesale values,” he added.

Also fueling the year-over-year price gain was late-model midsize cars and midsize SUV/CUVs. As he does regularly, Kontos closely examined these vehicles, holding constant for sale type, model-year age, mileage and model class segment, using criteria that often characterizes off-lease units. These vehicles are 3 years old or less and have less than 45,000 miles.

Prices for these particular midsize cars climbed 5.7% or $679 to $12,600, while prices for these specific SUV/CUVs rose 2.6% or $529 to $20,564.

Kontos went on to mention average wholesale prices for used vehicles remarketed by manufacturers in June jumped 4.6% month-over-month and 6.8% year-over-year. 

He noted June prices for fleet/lease consignors declined 2.0% sequentially but rose 4.3% annually.

Finally, Kontos pointed out average prices in June for dealer consignors increased 1.6% versus May and 7.3% year-over-year.

Source: ADESA Analytical Services.