Used-Car Prices

Storm-theme wholesale song plays again in September

CARMEL, Ind., and STAMFORD, Conn. - 

An accomplished musician beyond his analytical chops, KAR Auction Services chief economist Tom Kontos has previously seen a storm-themed song play its familiar tune in the wholesale market.

The company’s latest data showed the melody showed up again in September.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in September averaged $11,046, representing a lift of 0.9 percent compared to August and 2.9 percent relative to September of last year.

“Average wholesale prices in September were up month-over-month and year-over-year, bolstered by dealer demand in the hurricane-stricken regions,” Kontos said. “This impact may be waning and prices are likely to resume the softening pattern seen prior to these catastrophic events.

“In short, Harvey and Irma seem to have resulted in an impact to wholesale prices like that seen in the aftermath of Sandy: A lift of limited duration, geographic scope, and magnitude, but a lift nonetheless,” he continued in his latest Kontos Kommentary that also includes or via the window at the top of this page.

“Another underlying factor is the stop-sale of manufacturer units involved in recalls, which is keeping some of the supply growth, and the inevitable downward pressure on prices, at bay,” Kontos went on to say. “This, too, should resolve itself with time, resulting in a return to the softening price trend seen previously.”

Though truck segments outperformed car segments, Kontos explained prices moved higher for both groups, unlike in previous months when car prices often softened while truck prices climbed. 

“This could be indicative of greater balance in the supply of both groups of vehicles, whereas previously trucks were in relatively short supply,” Kontos said.

Looking again at a specific wholesale segment that’s become a staple of his monthly updates, Kontos pointed out that fleet and lease sales of two particular kinds of vehicles with 36,000 to 45,000 miles produced price climbs on a year-over-year basis in September.

Prices for midsize cars in this space rose by $304 or 2.7 percent to $11,641 while prices for midsize SUVs and CUVS jumped by $710 or 3.7 percent $19,767.

“Last month, when midsize SUV/CUV prices were down in this table, we suggested that prices might turn up in the aftermath of Harvey and strong truck demand in Texas. This appears to have been the case,” Kontos said.

That Texas truck demand also might have surfaced in the latest data from RVI Group, which saw both is real and nominal Used Vehicle Price Index climb on a sequential basis in September.

RVI Group indicated its September real index reading for full-size trucks climbed 2.7 percent month-over-month and 3.6 percent year-over-year.

Analysts found the RVI Used Vehicle Price Index (Real) increased from August to September by 1.8 percent. However, when compared to September of last year, prices were down by 0.4 percent.

Their Used Vehicle Price Index (Nominal) also moved 1.8 percent higher in September when compared to August. When compared to September of last year the index increased by 1.4 percent.

Turning back to ADESA’s September information, Kontos mentioned average wholesale prices for used vehicles remarketed by manufacturers were down 0.7 percent month-over-month and up 4.1 percent year-over-year. 

Prices for fleet/lease consignors rose 0.2 percent sequentially and 3.6 percent annually.

Average prices for dealer consignors ticked up 0.5 percent versus August and 5.7 percent relative to September of last year.

ADESA Wholesale Used-Vehicle Price Trends

   Average  Price  ($/Unit)  Latest  Month Versus
   September 2017  August 2017  September 2016  Prior Month  Prior Year
           
 Total All Vehicles  $11,046  $10,947  $10,731  0.9%  2.9%
           
 Total Cars  $8,777  $8,732  $8,663  0.5%  1.3%
 Compact Car  $6,682  $6,624  $6,495  0.9%  2.9%
 Midsize Car  $7,785  $7,639  $7,518  1.9%  3.6%
 Full-size Car  $7,243  $7,063  $7,608  2.5%  -4.8%
 Luxury Car  $14,007  $14,003  $13,769  0.0%  1.7%
 Sporty Car  $13,930  $13,903  $13,353  0.2%  4.3%
           
 Total Trucks  $13,182  $13,036  $12,735  1.1%  3.5%
 Minivan  $9,059  $8,777  $8,383  3.2%  8.1%
 Full-size Van  $13,005  $13,009  $13,457  0.0%  -3.4%
 Compact SUV/CUV  $10,673  $10,468  $10,525  2.0%  1.4%
 Midsize SUV/CUV  $11,430  $11,407  $11,655  0.2%  -1.9%
 Full-size SUV/CUV  $13,740  $13,353  $13,255  2.9%  3.7%
 Luxury SUV/CUV  $19,205  $18,947  $18,591  1.4%  3.3%
 Compact Pickup  $9,591  $9,599  $8,608  -0.1%  11.4%
 Full-size Pickup  $16,964  $16,989  $15,878  -0.2%  6.8%

Source: ADESA Analytical Services.



Projected October wholesale price move to be half of year-ago figure

McLEAN, Va. - 

With a stronger than normal performance pushing September price readings, the analyst team at J.D. Power Valuation Services is projecting that October’s wholesale movements will be less than half of what was recorded during the same month a year ago.

According to their latest issue of Guidelines, analysts expect that wholesale prices of vehicles up to 8 years in age will decline by approximately 1.6 percent in October. Should that projection come to fruition, it would represent a significant change from October 2016 when J.D. Power Valuation Services found that wholesale prices dropped by 3.7 percent.

“At the segment level, car losses are still expected to outpace those of trucks and SUVs,” analysts said in the report. “Continuing the trend of recent months, losses for luxury segments are forecast to fall by slightly more than the industry average for the month.”

J.D. Power Valuation Services added that it is continuing to watch how impact from Hurricanes Harvey and Irma are modifying full-year expectations. The latest update has used-vehicle prices falling by about 5.3 percent based on the J.D. Power Valuation Services’ Used Vehicle Price Index.

Last year’s move came in at a 4.1-percent softening. Looking ahead to 2018, analysts are suspecting that index-based losses to decelerate to about 3 percent.

As referenced earlier, September shook out similarly to what analysts are predicting to happen in October. The J.D. Power Valuation Services’ Used Vehicle Price Index increased 1.6 percent in September to 113.4, marking the second straight month of an upward climb.

Through the first nine months of the year, analysts calculated that the index is down 6.6 percent compared to the same stretch in 2016.

What pushed the September reading higher was wholesale prices of vehicles up to 8 years old dipping by just 1.1 percent.

“As expected, used-vehicle prices performed exceptionally well due in large part to significant decreases in supply and increase in demand stemming from disruptions of Hurricane Harvey and Irma,” analysts said in the report while adding that September prices dropped on average by 3.1 percent during the calendar’s ninth month of the past five years.

Looking at segment-level movement, J.D. Power Valuation Services indicated mainstream car losses were “mild” in September, predominantly falling into the tight range of 0.1 percent for midsize cars to 1.0 percent for compact utilities.

Within luxury units, analysts noticed losses were generally more pronounced with luxury compact utility prices dropping by the most at 2.7 percent.

“The compact utility segment continues to struggle from an influx of late-model auction volume, which has helped depress prices,” the report mentioned.

Furthermore, one luxury segment enjoyed a surprising lift as J.D. Power Valuation Services determined that prices for luxury large cars rose 1 percent in September; a month when typically the segment has declined by an average of 3 percent during the past five years.



Compact crossover SUVs post ‘significant’ price strength

LAWRENCEVILLE, Ga. - 

If you’re looking for compact crossover SUVs for your inventory, chances are you’re dipping deeper into your floor-plan account to get them.

This week’s Black Book Market Insights report indicated compact crossover SUVs are showing “significant” price strength against the rest of the market. In fact, editors put the increase at 1.1 percent looking at figures as of Oct. 1 versus a month earlier.

Meanwhile, Black Book added that a handful of truck segments showed strong retention versus that of cars.

“Depreciation increased on both cars and light trucks. Car segments saw the highest weekly depreciation in seven weeks. However, prices in the Houston-area market remain elevated,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.

Volume-weighted data showed that overall car segment values decreased by 0.50 percent last week, worse than the average weekly decrease of 0.36 percent in values spotted during the previous four weeks.

Editors mentioned sub-compact car, compact car and full-size car segments performed the best while luxury car and premium sporty car segments declined the most.

Again volume-weighted information revealed overall truck segment values — including pickups, SUVs and vans — decreased by 0.26 percent last week, worse than the average weekly decrease of 0.15 percent in values editors noticed during the previous four weeks.

Black Book added that the luxury crossover/SUV generally performed the worst among truck segments.

Turning next to what Black Book representatives witnessed in the lanes, a Pennsylvania auction general manager told the observer: “The market is in neutral here, typical of the fall season. Dealers are more cautious with regard not only to what they will purchase, but how much they will pay.”

Down in Texas, the story played out similar to what’s been seen since Hurricane Harvey impacted the region nearly two months ago.

“Prices remain elevated, and the buyers’ options remain good from an inventory standpoint,” Black Book’s lane watcher in the Lone Star State said. “The supply has met the demand adequately after the hurricane due to the abundance of vehicles being shipped into our area.”

Over in Georgia, dealers aren’t necessarily making the hammer fall with every vehicle that crosses the block.

“There is a lot of hesitation in the current market. The fact that dealers are buying lower-priced vehicles which often have some type of damage and/or high mileage is evidence of their apprehension,” said Black Book’s representative stationed in Georgia.

Finally, up in Michigan where fall is in full swing, the activity matched the changing weather with the observer noting, “Trucks and SUVs made up most of the consignment and an even larger portion of the sales conversions.”



Used-car prices looking ‘heck of a lot better’

CARY, N.C.  - 

Perhaps the recent hullabaloo about a potential used-car price collapse was much ado about nothing.

Retention values for 1- to 3-year-old vehicles in 2017, as calculated by Kelley Blue Book, were at 56 percent at the beginning of October, which is slightly ahead of year-ago levels (55 percent).

“The lack of normal depreciation in used-vehicle values this summer has meant that the typical curve that peaks in the spring and then declines throughout the rest of the year has only seen a moderate decline,” Cox Automotive chief economist Jonathan Smoke said in a quarterly call with analysts and the media on Oct. 6.

“Note also that 2017 didn’t see a rise in the spring similar to prior years,” he said. “This is likely a result of auction volumes peaking in the first quarter, while demand was not as brisk as usual due to delayed task refunds.

“So the year started off looking bleak, if you gauged the world through the lens of retention values,” Smoke said. “But now it looks a heck of a lot better.”

Particularly if you look at the Manheim Used Vehicle Value Index, which in September reached a fifth straight record high (134.9).

That was also up 6.3 percent year-over-year, with wholesale prices climbing 2.77 percent. It capped a quarter the company said was “one for the record books.”

‘Controversy … put to rest’

Smoke joined Cox Automotive in April to eventually replace Tom Webb, who retired at the end of June. At the time, worries about used-car prices had reached “a near-fever pitch,” Smoke recalled.

“The Manheim index wasn’t showing the same kinds of declines as what other indices that are really measures of retention values were showing,” Smoke said. “But those indices do not show used-vehicle price trends. They show retention value trends, which are a function of values relative to MSRP and represent a fixed basket of vehicles and not the whole market.

“But the whole controversy about what’s really going on should now be put to rest. Retention values have fallen from their abnormally strong peak experienced in 2014, which was a function of abnormally strong used-vehicle values prior to 2014, but also strong new-vehicle price performance, as well,” he said.

“Then throw in a fixed basket more heavily weighted to what was leased in 2014 — predominantly cars — you have the double-whammy of retention values coming back down to normal, but also falling because of consumer preference shifting away from cars to SUVs and trucks.”

Retention index growth at 5-year high; hike won’t last ‘much longer’

Black Book reported that its Used Vehicle Retention Index for September posted the largest month-over-month gain since March 2012. The index reading increased from 112.6 to 113.9, as replacement demand impact from Hurricane Harvey lingered.

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as a percent of original typically equipped MSRP.

“We certainly anticipated a near-term increase in the Index in last month's report, and with the storm replacement activity kicking in we believe this activity will continue in the next month but not much longer,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book, in the October analysis.

“We saw a nice bump in several car segments, and we also anticipate several truck segments to see increases as well, especially with the demand for service and construction vehicles. It was interesting that mainstream car segments and compact SUVs experienced the largest increase in immediate replacement demand,” Goyal continued.

In the early part of October (the week of Sept. 29 through Oct. 6), Black Book found that trucks were retaining more value than cars, but their rate of deprecation compared to the prior month was growing faster.

The week-over-week depreciation (volume-weighted) for cars was 0.4 percent. The preceding four weeks had average depreciation of 0.33 percent.

For trucks, week-over-week depreciation was 0.28 percent. It was 0.12 percent for the preceding four weeks.

Goyal also points out in that analysis, “Small and midsize cars are continuing to do well, even as the buying frenzy after the hurricanes has slowed down.”

Subcompacts were down 0.17 percent, compacts were down 0.32 percent and midsize cars were down 0.25 percent, according to Black Book. 



Black Book’s index makes largest sequential jump in more than 5 years

LAWRENCEVILLE, Ga. - 

The surge Hurricane Harvey created still is rippling through the wholesale market.

Black Book reported that its Used Vehicle Retention Index for September posted the largest month-over-month gain since March 2012. The index reading increased from 112.6 to 113.9.

Hurricane Harvey caused major flooding throughout parts of Texas, resulting in an estimated up to 500,000 cars and trucks needing to be replaced. The replacement process began in September, with compact cars (up 2.8 percent), compact crossover SUVs (up 2.4 percent), full-size cars (up 2.5 percent) and mid-size cars (up 2.3 percent) each seeing significant month-over-month increases within the Index.

“We certainly anticipated a near-term increase in the Index in last month's report, and with the storm replacement activity kicking in we believe this activity will continue in the next month but not much longer,” said Anil Goyal, senior vice president of automotive valuation and analytics for Black Book.

“We saw a nice bump in several car segments, and we also anticipate several truck segments to see increases as well, especially with the demand for service and construction vehicles. It was interesting that mainstream car segments and compact SUVs experienced the largest increase in immediate replacement demand,” Goyal continued.

The Black Book Used Vehicle Retention Index is calculated using Black Book’s published wholesale average value on 2- to 6-year-old used vehicles, as a percent of original typically equipped MSRP.

The index dates back to January 2005, where Black Book published a benchmark index value of 100.0 for the market. During 2008, the index dropped by 14.1 percent, while during 2016, the index fell by just 6.4 percent. During 2011, the index rose strongly from 113.3 to 123.0 by the end of the year as the economy picked up steam and used vehicle values rose higher.

It continued to remain relatively stable, rising slightly until May of 2014 when it hit a peak of 128.1.

To obtain a copy of the latest Black Book Wholesale Value Index, .



Typical fall trends make their way into the lanes

LAWRENCEVILLE, Ga. - 

With fall officially arriving, dealer behavior is changing accordingly based on the data and observations included in the latest Black Book Market Insights report.

Along with more perspective on hurricane-related buying, editors shared in this week’s rundown that truck segments performed much better than car segments. Three vehicle categories within the truck segments increased in value last week, including compact crossovers, compact vans and small pickups.

“Depreciation was steep on luxury cars and sporty cars while smaller cars, SUVs and pickup trucks held their values relatively well last week,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics.

Volume-weighted, Black Book indicated that overall car segment values decreased by 0.38 percent last week, close to the average weekly drop of 0.33 percent in values registered during the previous four weeks.

Editors noticed midsize, compact and sub-compact cars performed well, while prestige luxury car and premium sporty car segments declined the most.

Again volume-weighted, Black Book found that overall truck segment values (including pickups, SUVs and vans) softened by 0.17 percent last week, similar to the average weekly decrease of 0.14 percent in values spotted during the previous four weeks.

Editors mentioned the full-size luxury crossover/SUV and minivan segments dropped the most among truck segments by 0.43 percent and 0.46 percent, respectively.

Turning next to what Black Book’s representatives in the lanes reported back to headquarters, various auctions are involved in how dealers impacted by hurricanes are responding.

From Texas: “Consignment was off a little today, but the prices are holding steady.”

Another anecdote from the Lone Star State added: “The rental lanes are doing well with compact cars experiencing strong sales. The price point on those vehicles makes them popular as flood-replacement vehicles.”

And from Florida: “Buyers are being cautious and only purchasing vehicles as replacements for previous retail sales.”

Up North where the leaves are likely already turning to red and gold, dealers are bracing for when it turns cold and shopper behavior changes accordingly.

From Michigan: “Retail is just OK in the area. Two wheel drive SUVs and pickups have begun their seasonal dip in values.”

From Massachusetts: “The change in weather has prompted the usual shift in dealer buying. There is more caution and hesitation in the bidding process.”



Units from as far as California and Wisconsin heading for Texas

LAWRENCEVILLE, Ga. - 

While the September used-vehicle sales projection might not show it, dealers are certainly bracing for additional sales stemming from hurricane-damaged vehicles that need to be replaced.

And it’s reflecting in how prices are moving, according to the latest this week’s Black Book Market Insights report. Editors found that prices for both compact cars and crossovers were strong as dealers, especially in Texas, search from long distances for inventory that hasn’t been touched by floodwaters.

“Nearly all segments besides luxury vehicles and sporty cars performed well last week as buyers from Texas bid up prices to acquire replacement vehicles,” said Anil Goyal, Black Boo’s senior vice president of automotive valuation and analytics, who also is one of the many experts on the docket for , which begins on Nov. 13 in Palm Springs, Calif.

Based on volume-weighted data, Black Book determined overall car segment values decreased by 0.19 percent last week, much better than the average weekly decrease of 0.42 percent in values spotted during the previous four weeks.

Editors said, “Compact cars performed the best while sub-compact, midsize, and full-size car values were strong as well with no depreciation last week.”

Again looking at volume-weighted information, Black Book found that the overall truck segment values — including pickups, SUVs, and vans — decreased by 0.10 percent last week; an improvement compared to the average weekly decrease of 0.19 percent in values noticed during the previous four weeks.

Subcompact crossover and compact crossover/SUV segments increased the most among truck segments by 0.46 percent and 0.39 percent, respectively.

Turning next to what Black Book’s representatives noticed in the lanes, observers watched Lone Star State dealers hunt for vehicles. Apparently Texas dealers are looking to auctions in Georgia to find what they need.

“It was a mixed bag at the auction this week. It seemed like there was no in-between as the reps were either selling everything or selling very few. The lanes that were selling were heavily influenced by the Texas online buyers,” said Black Book’s lane watcher stationed in Georgia.

Black Book’s representative stationed in Texas added, “The sales percentages and prices are high as you would expect after Hurricane Harvey. Dealers say that they will have to be diligent in their inspections for the next few months as damaged or damage repaired vehicles will be available.”

Even on the West Coast, hurricane impact can be seen as Black Book’s observer in California mentioned, “Several dealers stated that they are buying vehicles that will be loaded up and transported east to Texas.”

It’s also happening in the Midwest since Black Book learned from Wisconsin, “While local buying is not great, the internet sales are doing quite well due to the replacement vehicles being purchased for Texas.”

Also out of the nation’s midsection, Black Book’s other anecdote from Illinois mentioned, “There was strong bidding here, and the prices continue to hold their own. All in all a pretty good fall market.”



Evidence builds that hurricanes are pushing September prices higher

ATLANTA and McLEAN, Va. - 

Like KAR Auction Services noticed as well, both Cox Automotive and J.D. Power Valuation Services are watching closely how Hurricanes Harvey and Irma are impacting used-vehicle prices in September. And evidence is prompting analysts to modify their expectations for where the price readings might be by the end of the month.

According to a note shared with AuSM, Cox Automotive chief economist Jonathan Smoke is already seeing early indicators that would push the Manheim Used Vehicle Value Index to a fifth straight record high. Smoke noted that prices are on pace to be 3 percent higher on a sequential basis and 6 percent above the year-ago reading.

“These are significant increases,” Smoke said. “If the pattern holds for the rest of September, we will be seeing the strongest annual price gains since 2010, when the economic recovery was beginning, and used car supply was severely limited.

 “All seven light-vehicle segments are seeing price gains month-to-month and year-over-year.  Even lowly midsize sedans, which have been seeing price declines for 10-straight months, are seeing gains this month,” he added.

Meanwhile, the team at J.D. Power Valuation Services highlighted in the September issue of Guidelines that wholesale prices of vehicles up to 8 years in age are expected to decline by approximately 1.8 percent this month; much less than the 3.4 percent drop analysts recorded in September of last year.

Before the storms ripped through Texas and Florida, J.D. Power Valuation Services indicated that its September expectations included a 2.8-percent price dip with projected demand prompting analysts to make an adjustment.

“The impact of recent hurricane activity has affected the market for new and used vehicles in the United States,” analysts said in the report. “We have updated our September 2017 values to better reflect current market conditions.”

“While estimates of the number of vehicles damaged by Hurricanes Harvey and Irma have a large range, it is clear the reduction in vehicle supply and the accompanying demand for replacements is significantly large. As a result the used-vehicle market will be affected,” they continued.

Analysts added that they are “monitoring this situation closely. Based on previous corollary events, we are implementing adjustments to our forecasts for values in September and October and potentially further into the future.”

As far as September goes, J.D. Power Valuation Services still thinks car losses are expected to outpace softening of prices of trucks and SUVs.

“Midsize and large pickups continue to perform very well and are forecast to outperform the industry average,” the report noted. “Losses for all premium segments are forecast to fall by slightly more than the industry average for the month.”

And as the industry moves deeper into fall with the ramifications of Harvey and Irma in play, J.D. Power Valuation Services reflected back on Superstorm Sandy (October 2012) and Hurricane Katrina (August 2005), noting how each storm trigged moderate and brief increases in used-vehicle values that “are not readily explained by coincidental economic factors.”

Analysts went on to say in the report, “The historical corollaries suggest the impact will dissipate after three to four months. Additional updates will be provided regarding adjustments in the future based on all available information and analysis.”

August price analysis

In the same installment of Guidelines, J.D. Power Valuation Services reported that wholesale prices of vehicles up to 8 years in age softened by 1.2 percent in August. Looking back over the past five years, price declines averaged 2.2 percent during August.

As a result of the latest movement, J.D. Power Valuation Services’ Seasonally Adjusted Used Vehicle Price Index rose by 1.1 percent to 111.5; the largest index climb since May of last year.

Looking at segments, large cars led the price declines, softening by 2.6 percent and falling in line with the average decrease of 2.4 percent analysts spotted during the past five years.

Midsize van values dipped by 2.1 percent in August with decreases for compact and midsize utilities both coming in at 1.3 percent.

On the premium side of the market, the report mentioned losses for luxury large utilities (down 2.3 percent) and luxury midsize cars (down 2.2 percent) led the way. However, analysts spotted a 0.4 percent uptick for luxury large cars, the first positive August movement for this segment since 1998.



Harvey needed only days to influence August prices

CARMEL, Ind. - 

Hurricane Harvey landed in Texas with a week left in August, and its flooding left an immediate impact on wholesale price movements for the month, according to KAR Auction Services chief economist Tom Kontos.

According to ADESA Analytical Services’ monthly analysis of wholesale used-vehicle prices by vehicle model class released on Wednesday, wholesale used-vehicle prices in August averaged $10,947. The reading represented 0.6 percent uptick compared to July and a 1.9 percent rise relative to August of last year.

“Average wholesale prices in August were once again up largely on the strength of truck prices, although another factor could be early impacts from Hurricane Harvey, which appeared to drive prices up at the end of the month, particularly in Texas,” Kontos said in his latest Kontos Kommentary.

“Luxury cars had a stand-out month, with significant average price increases on both a monthly and annual basis,” added Kontos, who is set to appear again during the National Remarketing Conference at , which begins on Nov. 13 in Palm Springs, Calif.

Kontos also continued his analysis of fleet and off-lease midsize cars and midsize CUVs/SUVs; units likely to have between 36,000 and 45,000 on the odometer. He found that price softening was less evident in August than in previous months when holding constant for sale type, model-year age, mileage, and model class segment. 

In fact, midsize car prices were up on a year-basis as they rose by $113 to $11,667.

“Last month, we noted that midsize SUV/CUV prices were reversing their previous trend and softening more than midsize car prices, and this month the two bellwether segments moved in opposite directions.  This pattern may change in the aftermath of Harvey, as truck demand in Texas should ramp up,” Kontos said. He also elaborated about this point in a as well as at the top of this page.

Kontos closed his analysis by mentioning average wholesale prices for used vehicles remarketed by manufacturers climbed 4.6 percent month-over-month and up 6.5 percent year-over-year.

Prices for fleet/lease consignors were up 1.4 percent sequentially and up 2.3 percent annually.

He also mentioned average prices for dealer consignors softened by 1.2 percent versus July and jumped by 3.0 percent relative to August of last year.

ADESA Wholesale Used-Vehicle Price Trends
   Average  Price  ($/Unit)  Latest  Month Versus
   August 2017  July 2017  August 2016  Prior Month  Prior Year
           
 Total All Vehicles  $10,947  $10,887  $10,738  0.6%  1.9%
           
 Total Cars  $8,732  $8,613  $8,675  1.4%  0.7%
 Compact Car  $6,624  $6,582  $6,597  0.6%  0.4%
 Midsize Car  $7,639  $7,633  $7,748  0.1%  -1.4%
 Full-size Car  $7,063  $7,018  $7,651  0.6%  -7.7%
 Luxury Car  $14,003  $13,582  $13,356  3.1%  4.8%
 Sporty Car  $13,903  $14,164  $13,605  -1.8%  2.2%
           
 Total Trucks  $13,036  $13,058  $12,751  -0.2%  2.2%
 Minivan  $8,777  $8,064  $8,183  2.0%  7.3%
 Full-size Van  $12,317  $11,875  $13,350  3.7%  -7.7%
 Compact SUV/CUV  $10,468  $10,467  $10,673  0.0%  -1.9%
 Midsize SUV/CUV  $11,407  $11,402  $11,448  0.0%  -0.4%
 Full-size SUV/CUV  $13,353  $13,353  $13,292  0.0%  0.5%
 Luxury SUV/CUV  $18,947  $19,099  $18,610  -0.8%  1.8%
 Compact Pickup  $9,599  $9,615  $8,485  -0.2%  13.1%
 Full-size Pickup  $16,989  $17,061  $16,141  -0.4%  5.3%

Source: ADESA Analytical Services. July data revised



Compact SUV demand keeps overall truck values steady

LAWRENCEVILLE, Ga. - 

With some interesting anecdotes about how dealers are handling hurricane fallout, Black Book also highlighted how one specific segment impacted the entire truck segment.

This week’s Black Book Market Insights report mentioned compact SUVs increasing their value noticeably, giving the truck segment an overall boost in retention value.

Editors noticed the car segment depreciated by a standard amount with only one vehicle category — midsize cars — increasing in value by 0.13 percent.

“Active buying continued last week as Texas dealers replenished their inventory. Compact SUVs and midsize cars did well,” said Anil Goyal, Black Book’s senior vice president of automotive valuation and analytics, who is among the wide array of experts coming to , which begins on Nov. 13 in Palm Springs, Calif.

Volume-weighted, Black Book reported that overall car segment values decreased by 0.48 percent last week, similar to the average weekly decrease of 0.41 percent in values over the previous four weeks.

Editors noticed luxury and sporty vehicles in car segments declined the most at 0.87 percent each.

Again volume-weighted, Black Book pointed out that overall truck segment values (including pickups, SUVs and vans) were nearly flat compared to the average weekly decrease of 0.27 percent in values spotted during the previous four weeks.

Editors reported the compact crossover/SUV and compact van segments increased the most among truck segments by 0.37 percent and 0.51 percent, respectively.

As Goyal referenced, Lone Star State dealers are heading to the lanes to find vehicles as consumers impacted by Hurricane Harvey are looking for replacement vehicles. In fact, one of Black Book’s observers at a Georgia auction watched the action happen.

“A dealer from San Antonio bought a lot of vehicles for strong money. He stated that he usually buys 15 units a week but bought 41 at this auction alone today to meet the demand back home,” Black Book’s representative said.

Within the state of Texas, the activity was even more intense.

“Sold almost everything today, and the buyers that usually don’t buy high mileage units were not discriminating today,” Black Book’s lane watcher in Texas reported.

Another report from Texas added, “Hundreds of flooded new vehicles at the auction where they were marshalling them before they were to be crushed.”

Black Book’s other two reports from the lanes mentioned much less active scenes.

From Tennessee: “Lots of no-sales as dealers and commercial accounts are holding their floor prices in advance of the anticipated high demand caused by the recent storms.”

From Colorado: “Low attendance and low vehicle volume but the vehicles that were here sold well.”



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