More confirmation about the unusual path wholesale prices took in February arrived from the team at KAR Auction Services on Tuesday.

Coming on the heels of what J.D. Power Valuation Services shared, ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class showed wholesale used vehicle prices in February averaged $10,688 — down 2.3 percent compared to January but up 4.8 percent relative to February of last year.

KAR Auction Services chief economist Tom Kontos explained that almost all model classes showed monthly declines. Kontos indicated in his monthly report, Kontos Kommentary, that although the slight increase to compact car prices was “encouraging,” this segment has been especially hard-hit by oversupply in recent years. 

Kontos also noted the year-over-year growth in minivan prices is exaggerated by newer models as discussed last month.

“Further concrete evidence of price softening appeared in February as prices uncharacteristically, and unseasonably, softened rather than firmed versus January,” said Kontos, who elaborated about these trends in the online video available here and at the top of this page.

“Prices fell for virtually all model years and all model classes,” he continued. Prices were still up on a year-over-year basis, but this was again primarily due to the influx of younger off-lease units.”

Elsewhere in ADESA’s data, analysts found that average wholesale prices for used vehicles remarketed by manufacturers dipped 0.1 percent month-over-month and 1.0 percent year-over-year.

They also pointed out that prices for fleet/lease consignors dropped 3.4 percent sequentially but rose 3.6 percent annually.

“Within this segment, however, rental risk units showed month-on-month and year-on-year price declines,” Kontos said.

He went on to mention average prices for dealer consignors decreased by 1.2 percent versus January, but climbed 2.5 percent relative to last February.

Based on National Automobile Dealers Association data, Kontos closed by stating retail used-vehicle sales by franchised and independent dealers were down 3.8 percent month-over-month but jumped 6.5 percent year-over-year. As highlighted in Auto Remarketing, he also mentioned February certified pre-owned sales rose 9.8 percent month-over-month but came in flat year-over-year, according to figures from Autodata Corp.

Source: ADESA Analytical Services.