Veteran dealers likely will say tax season isn’t what it used to be when some stores registered a significant portion of their annual retail sales fueled by refunds.

Well, KAR Auction Services chief economist Tom Kontos explained that based on the May wholesale data he reviewed, this year’s tax season might have rekindled memories of those active years.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class, wholesale used-vehicle prices in May averaged $11,667, which is up 1.5% compared to April and 5.0% relative to May.

Kontos indicated compact and midsize cars were two notable segments that experienced overall average price declines for the month.

“It would appear that the 2019 spring/tax season market started later but lasted longer than other years as average wholesale prices were up on both a month-over-month and year-over-year basis in May,” he said in the latest installment of the Kontos Kommentary.

“Retail used-vehicle sales, including CPO sales, provided demand-side support for wholesale values,” Kontos added.

Popular vehicles that might have ended up as certified pre-owned units — late-model midsize cars and SUVs/CUVs — both generated price climbs in May. As he does regularly, Kontos examined these units when holding constant for sale type, model-year age, mileage, and model class segment.

For those cars, the year-over-year lift came in at 5.6% (or $669) to rise to $12,612. For those SUVs, the year-over-year jump was 0.7% (or $156) to $21,013.

Kontos continued his regular update by noting average wholesale prices for used vehicles remarketed by manufacturers in May softened 1.2% month-over-month and 0.7% year-over-year. 

He mentioned prices for fleet/lease consignors in May ticked up 2.0% sequentially and 5.5% annually. 

Finally, Kontos said average May prices for dealer consignors rose 1.7% versus April and 4.3% compared to May of last year.

Source: ADESA Analytical Services.