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Report draws on ADESA’s trans­ac­tions tak­ing place at net­work of 53 whole­sale used vehi­cle auc­tions & data­bas­es that include auc­tions out­side ADESA net­work
“Deal­ers got a case of ‘reverse stick­er shock’ when they real­ized their sur­plus trade-ins had to com­pete with heavy auc­tion vol­umes from off-rental units.” — Tom Kon­tos, VP of indus­try rela­tions & ana­lyt­i­cal ser­vices for ADESA & author of Pulse
“It appears that Detroit as much or more than Wash­ing­ton, has been respon­si­ble for pro­vid­ing eco­nom­ic stim­u­lus in the after­math of Sep­tem­ber 11.” — Pulse
Significant Points
Whole­sale used vehi­cle prices fell 5.2% in Oct & 4.4% in Nov com­pared to 2000
Deal­ers buy­ing used cars at auc­tion while over­sup­ply & prices low–
May get high retail prof­its in spring when demand is tra­di­tion­al­ly high­est
Exam­ple: Avg prices for 3-year-old SUVs sold at auc­tion by auto finance com­pa­nies fell $570 (4.3%) from $13,393 last Nov to $12,823 this year
Deal­ers took in large num­bers of trade-ins dur­ing Oct record new vehi­cle sales month
Many vehi­cles found way to auc­tions, where whole­sale used car prices are estab­lished
Also high lev­el off-lease units caus­ing “bub­ble” of over­sup­ply