Kontos: Dealers going after certifiable off-rental program vehicles, Gutierrez: Pickup values were down from January March 20, 2014
Tom Kontos 2014 photo

Dealers Bid Strong to Prep for Budding Spring Market

Tom Kontos
Executive VP & Chief Economist
ADESA Analytical Services

Wholesale prices were down in February from January, which was a bit unusual given typical seasonal patterns; they were up modestly YOY despite continued supply growth, weaker demand, and severe weather conditions. Unusual pattern indicates dealers were being fairly aggressive in bidding in-lane and online to fill demand in budding Spring market. Highly certifiable off-rental program vehicles from automakers were particularly popular.

Click here to read the latest Kontos Kommentary

Wholesale Prices Down 1.4% from January but up 0.9% over February 2013:
Compact cars and vans were only segments that had both monthly and YOY gains.

Demand for Certified Upped Manufacturer Prices – 1.3% MOM and 6.3% YOY:
Fleet/lease down 0.5% MOM and up 1.1% YOY, consignors down 1.1% from January and up 0.9% YOY.

Retail Used Vehicle Sale Down 15.6% from January Due to Severe Weather:
CPO sales were up 7.7% from January and 14.1% from prior year.

Prices Expected to Remain Below 2013 Level

Alec Gutierrez
Senior Analyst
Kelley Blue Book

Auction values continued to rise through February 2014, just $27 shy of last year’s February average. Values are expected to continue their seasonal upswing through April, while remaining just below 2013 levels. Kelley Blue Book expects 2014 values to remain slightly below that of 2013 throughout the remainder of the year.

Here’s the latest Blue Book Market Report – Used Car Edition

Gasoline Price Has Been About $3.33 – 36 Cents Lower than Last Year:
Benefits truck segments and can decrease demand in hybrid or fuel-efficient vehicle segments.

Full-size Pickups Were Higher than Last Year But Down from January:
Decline may be due to typical seasonal patterns, and slower construction may lengthen period of lower values.

Mid-size Vehicles Up 1.18% Year-to-Date but 1.15% Lower than 2013:
Best performers in segment during February 2014 were Volkswagen Passat, Subaru Legacy, and Hyundai Sonata – up 5.3%, 2.8%, and 2.6% respectively.

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