Executive VP & Chief Economist
ADESA Analytical Services
Average wholesale prices continued declining again during the month of June – down 2.5% from May, but up 2.4% relative to June 2014. Seasonal factors played a part, but supply growth continued to brig downward price pressure. Supply growth influence has been somewhat offset by a “richer mix” of higher-priced off-rental manufacturers program vehicles and off-lease units discussed in previous commentaries.
Used Retail Sales Were at Relatively High Levels, but Down a Bit from May:
Franchised dealers had 2.5% year-over-year sales increase, independents up 3.6%.
Increased Supply of Compact Cars Played Role in Softer June Prices:
SUVs also saw some price correction, but fuel prices remain favorable to them.
Off-Rental Program Volumes Softened Vehicles Remarketed by Manufacturers:
Rental risk units played their part in softening fleet/lease consignor used vehicle prices.