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.
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.