ADESA and KBB Report Softening Used Car Prices in July August 21, 2014
Tom Kontos 2014 photo

Kontos: Increasing Supply from Diverse Channels Softens Used Car Prices

Tom Kontos
Executive VP & Chief Economist
ADESA Analytical Services

Wholesale prices continued softening in July; that came from retail used vehicle sales coming down year-over-year (though up month-over-month). Dealers also saw more trade-ins from strong new vehicle sales. As expected, supply is continuing to increase as more off-lease and off-rental units entered market though online upstream and physical auction channels; and growing auction inventories.

Click here to read July 2014 Kontos Kommentary

Wholesale Used Vehicle Prices Averaged $9,743 in July:
That was down 2.2% from June and up 3.3% from July 2013.

Prices Were Down for Virtually All Model Classes Between June and July:
Minivans and Mini SUVs hardest hit, with month-over-month (M-O-M) declines of 5.7% and 3.8%, respectively.

Prices for Used Remarketed by Manufacturers Down 1.9% M-O-M and 4.7% Y-O-Y:
That indicated weaker demand for high off-rental program vehicle inventories.
Gutierrez_Alec_KBB_2014 photo

KBB: Significant Used Car Price Declines Continue through July

Alec Gutierrez
Senior Analyst
Kelley Blue Book

Last month, the industry average for used car auction values dropped nearly $334 month-over-month, or 1.85% — a continuation of significant declines. Values hit a higher-than-expected peak this year caused by a delay in the typical spring selling season that came from a poor winter season in January and February. KBB expects these declines to be pronounced throughout the rest of the year.

Here’s the latest Blue Book Market Report

Subcompact Segment Reported Largest Decrease As is Typical for the Segment:
Year-over-year, the segment had fallen 4.2% at start of June and came in at 3.1% month-over-month decline in July.

Truck and Full-Size Van Used Vehicle Values Decreased During July:
Yet year-to-date change remains positive and highest in comparison to all other segments.

Since June, Gasoline Prices Were Relatively Higher Year-Over-Year:
However, prices are beginning to decline to where they were in 2013.
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