Wholesale Prices Soften in May
The softening of wholesale prices in May could be a precursor to further softening, according to Tom Kontos, chief economist for ADESA Analytical Services.
CARMEL, Ind. — Tom Kontos, chief economist for ADESA Analytical Services, reported this week that wholesale prices in May softened from their April peak, although they remained significantly above year-ago levels.
Kontos said in his Kontos Kommentary report that May’s downturn could be a precursor to further softening, especially in areas such as the Northeast where the growth in off-lease supply is expected to be concentrated.
“Retail demand, particularly for ‘certifiable’ units for record CPO sales, helped absorb off-rental volume and growing off-lease supply without significant price declines,” Kontos said. “However, there was some hesitancy from a few sellers to accept May’s lower prices, and this was reflected in low conversion rates for those consignors.”
During the month, wholesale used-vehicle prices averaged $10,321 — down 1.5% compared to April and up 5.4% relative to May 2013, according to data from ADESA Analytical Services. Truck prices continued to hold firmer than car prices.
Kontos also noted that prices for used vehicles remarketed by manufacturers were down 1.4% month-over-month and up 5.0% year-over-year, as more off-rental program units entered the market — many of which were not sold.
Prices for fleet and lease cosignors were down 1.5% sequentially and up 4.2% annually, as more off-rental risk units entered the market, as well as more off-lease vehicles. Dealer consignors saw a 2.5% average price decrease during the month vs. April, and a 3.7% uptick vs. the previous year, as they wholesaled units obtained in part from trade-ins generated via May’s strong new-vehicle sales.
Additionally, retail used-vehicle sales in May were up 12.3% month over month and 3.9% year over year, according to data from CNW Marketing/Research. Autodata reported that sales of certified pre-owned vehicles were a record 207,371 units, up 7.4% vs. April and up 10.9% from the prior year, Kontos noted.
More Dealer Ops

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
Timing the Market Can Hurt Long-Term Program Performance
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
IA American Appoints Two Execs
Senior vice presidents of the company's agent and dealer channels chosen to support general agents and help auto dealers with sales and performance.
Read More →
Cox Automotive Acquires Inspection Firm
Full ownership of Alliance Inspection Management, or AiM, meant to unlock growth for Manheim inspection capabilities
Read More →
Assurant Expands Partnership With Holman
Extended collaboration delivers training, products and performance development to 30 newly acquired Holman dealerships
Read More →
Franchises, Throughput Down in First Half
A handful of states see franchise growth through June, while EV sales per store boost overall business in U.S.
Read More →