Kontos Kommentary on Market Dynamics Shaping Pricing

Tom Kontos

Tom Kon­tos
Exec­u­tive Vice Pres­i­dent, Cus­tomer Strate­gies & Ana­lyt­ics
ADESA Ana­lyt­i­cal Ser­vices

Improv­ing trade-in vol­ume from sev­er­al months of strong new vehi­cle sales has fran­chised deal­ers less hun­gry for cars at auc­tion and more prone to whole­sale some units. Both dynam­ics are putting down­ward pres­sure on whole­sale prices.

Click here to read Kon­tos Kom­men­tary

Late-Mod­el Units Remain in Short Sup­ply w/ Deal­ers Tak­ing Old­er, Rougher Trades:
Many con­sumers wait­ed as long as they could to replace their vehi­cles after the reces­sion.

Whole­sale Used Vehi­cle Prices in August Aver­aged $9,518:
Down 0.4% com­pared to July and down 3.7% rel­a­tive to August 2011.

Year-Over-Year Whole­sale Price Drops in 4% Range Through­out Sum­mer:
Com­bined w/ 5 con­sec­u­tive month-over-month drops con­firm that this is indeed soft­en­ing mar­ket.



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