Kontos and NADA See Price Declines Soften in November Market December 18, 2014
Kontos_Tom_2014


Prices See a Balancing Act between Demand and High Volume

Tom Kontos
Executive VP & Chief Economist
ADESA Analytical Services

Wholesale used vehicle prices are continuing a balancing act where demand so far has been enough to offset the high volume from off-lease vehicles and trade-ins. The recent trend continued toward a richer mix of late-model vehicles that have biased prices upward; certified pre-owned vehicles have also increased demand-side support.

Check out the latest edition of Kontos Kommentary

Wholesale Prices Averaged $9,862 – Up 1.8% Over October and 1.1% Over Year Ago:
Fullisize SUVs, luxury cars, and luxury SUVs had strong month-over-month gains.

Vehicles Remarketed by Manufacturers Up 4.1% M-O-M but Down 8.1% Y-O-Y:
Fleet/lease consignor prices up 0.3% sequentially but down 2.1% annually.

Off-Rental Risk Units Held Strong Considering High Volumes Being Remarketed:
Could be due to curtailment of sales for selected off-rental program vehicles until after the new year.
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Banks_Jonathan


November Down but Ends Four Month Depreciation Streak

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

Wholesale prices slipped by 1.3% in November, a result better than what has been historically recorded for the month. That also produced results ending a four-month streak with depreciation at or above 3%. Strong demand and a pullback in auction volume slowed used vehicle depreciation to one of the lowest levels of the year.

Here’s the December 2014 edition of Guidelines

NADA’s Used Vehicle Price Index Increased to 123.0 and Down from 124.0 Year Ago:
November’s solid performance lifted index nearly two percentage points over October.

Incentive Spending at Nearly $2,900 and 22nd Consecutive Monthly Increase:
Helped new vehicle sales rise by 4.5% as SAAR nears 17.1M vehicles.

Mid-size Vans Had Largest Segment Drop When it Fell by 2.6%:
But much less than the nearly 5% drop averaged in the two months prior.
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Used car mar­ket insights, resid­ual fore­casts for the lease and risk mar­kets, and spe­cific details into totally new prod­ucts for the US market.

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