Executive VP & Chief Economist
ADESA Analytical Services
Wholesale prices were down in November from October and were essentially flat compared to November 2014. As seen in previous months, that monthly price increase was driven primarily by truck prices. Off-rental units contributed to price gains, but that upward tick can be deceiving given that “conversion rates” (units sold as a percentage of units offered) reached or exceeded asking prices in manufacturer and car rental auction sales. More of the price softness came from the growing off-lease volume in three-year old used vehicles.
Here’s the latest of edition of Kontos Kommentary
Analyst Forecasts about Prices Softening with Used Supply is Taking Root:
Major saving grace continues to be strong retail demand, especially for CPO vehicles.
Soft Pricing Affecting Institutional Consignors More than Dealers:
Dealers have option of retailing vehicles and only wholesaling units which can sell for attractive prices.
November Sales Up 1.1% Over October and Modest 0.1% Over November 2014:
Truck and SUV prices strong relative to car and crossover (CUV) prices year-over-year.