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Kontos: Wholesale Pricing Increases 4.9% in July

The average wholesale used price in July was $10,362, a 2% decline from June but a a 4.9% increase from a year ago, according to ADESA Analytical Services. The strength of truck prices carried the year-over-year gains.

by Staff
August 10, 2016
2 min to read


CARMEL, Ind. — The average wholesale used price in July was $10,362, a 2% decline from June but a 4.9% increase from year-ago period, according to ADESA Analytical Services. The strength of truck prices carried the year-over-year gains, while declines in every other segment drove down wholesale prices on a month-over-month basis.  

Compact and full-size pickups were the only vehicle segments to realize a gain in whole sale used pricing on a month-over-month basis. On a year-over-year basis, however, nearly all segments realized price increases, with only the compact and full-size car segments showing year-over-year decreases, noted the firm.

Full-size cars recorded the biggest decline in value, falling 11.1% to an average wholesale price of $6,984. Compact car prices experienced a similar drop, falling 8.7% to $6,325.

The biggest year-over-year gain during the month came from the minivan segment, which saw its average wholesales price increase13.8% from a year ago to $7,728, according to ADESA. The second-biggest gain came from midsize and full-size SUV/CUVs, which saw average wholesale prices climb 12% and 11.9%, respectively, from a year ago to $11,054 and $12,848.

“Average wholesale values fell again seasonally in July, but they remain up on a year-over-year basis largely because of the continued price strength of trucks and continued growth of younger, lower mileage, higher priced off-lease supply,” said Tom Kontos, ADESA's chief economist. “Recalls also played a role in the overall positive price performance, so it is not clear how wholesale prices might have fared absent the supply curtailments 'stop-sales' caused. 

"Nevertheless, retail used vehicle sales, especially near-record CPO sales, remain strong, providing demand-side support for wholesale values,” he added.

According to ADESA, the younger and lower mileage off-lease supply pushed the prices for fleet  and lease consignors up 3.1% compared to the same time last year. Certified pre-owned sales, according to the firm, were up 5.6% year over year.

Although manufacturers sold nearly 20% fewer remarketed used vehicles than they did during the same time last year, the average wholesale price for the vehicles they did sell was up 10.2% year over year. The firm noted that although recalls might have had a positive impact to pricing, they also attributed to the reduction in vehicles sold during the month.

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