Kontos’ special wholesale data set maintains trend in June

CARMEL, Ind. - 

KAR Auction Services chief economist Tom Kontos continues to be intrigued by the special slice of wholesale data he began to share three months ago that’s produced a consistent trend counter to the overall price reading.

But first, let’s look at that overall movement.

According to ADESA Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale used vehicle prices in June averaged $11,067 — down 0.7 percent compared to May but up 4.7 percent relative to June of last year.

Kontos explained that’s also available at the top of this page that compact and full-size pickup trucks and minivans showed significant average price gains for the month, while most other model classes registered month-over-month declines or modest increases. He reiterated that the year-over-year growth in minivan prices is exaggerated by newer models as discussed in January’s report.

And now to the other data trend garnering Kontos’ attention. Kontos indicated average prices for both of the two “bellwether” car and truck segments were down by about 4 percent year-over-year, reflecting growth in off-lease supply.

Prices for midsize cars that are 3-years-old with mileage reading between 36,000 and 45,000 miles dropped by $515, or 4.3 percent, to $11,474. And prices for midsize CUVs and SUVs at the same age and mileage declined by $809, or 3.9 percent, to $19,723.

“Average wholesale prices in June were down versus May but up on a year-over-year basis,” Kontos said. “However, drilling down into the data once again clearly reveals price softening on a year-over-year basis when accounting for sale type, vehicle age, model class and mileage.”

Kontos went on to mention that average wholesale prices for used vehicles remarketed by manufacturers in June were down 1.0 percent month-over-month and down 1.9 percent year-over-year.

He added that prices for fleet/lease consignors dipped 1.1 percent sequentially and up 3.2 percent annually.

Kontos went on to mention that average prices for dealer consignors ticked up 0.9 percent versus May and up 7.7 percent relative to June of last year.

ADESA Wholesale Used-Vehicle Price Trends
   Average  Price  ($/Unit)  Latest  Month Versus
   June 2017  May 2017  June 2016  Prior Month  Prior Year
           
 Total All Vehicles  $11,067  $11,140  $10,571  -0.7%  4.7%
           
 Total Cars  $8,808  $8,955  $8,562  -1.6%  2.9%
 Compact Car  $6,744  $6,836  $6,465  -1.3%  4.3%
 Midsize Car  $7,781  $7,967  $7,658  -2.3%  1.6%
 Full-size Car  $7,747  $8,395  $7,367  -7.7%  5.2%
 Luxury Car  $13,817  $13,767  $13,078  0.4%  5.6%
 Sporty Car  $14,420  $14,310  $14,274  0.8%  1.0%
           
 Total Trucks  $13,194  $13,247  $12,595  -0.4%  4.8%
 Minivan  $9,243  $9,117  $7,830  1.4%  18.0%
 Full-size Van  $12,859  $13,360  $12,500  -3.8%  2.9%
 Compact SUV/CUV  $10,567  $10,877  $10,882  -2.8%  -2.9%
 Midsize SUV/CUV  $11,702  $11,860  $11,118  -1.3%  5.3%
 Full-size SUV/CUV  $13,995  $14,077  $13,657  -0.6%  2.5%
 Luxury SUV/CUV  $19,186  $19,321  $18,842  -0.7%  1.8%
 Compact Pickup  $9,651  $9,368  $8,718  3.0%  10.7%
 Full-size Pickup  $16,953  $16,778  $15,836  1.0%  7.1%

Source: ADESA Analytical Services. May data revised.

TODAY'S TOP REMARKETING NEWS HEADLINES