ADESA and NADA See Supply Increasing with Prices Strong for Now February 18, 2015

Off-Rental Drove Used Prices Up Higher on Temporary Basis

Tom Kontos
Executive Vice President
ADESA Analytical Services

Wholesale prices last month were up month-over-month and year-over-year. January prices averaged $10,220 – up 3.6% compared to December and up 2.4% relative to January 2014. Price variances by model class segment were driven mainly by higher off-rental program vehicle sales this January compared to December and January 2014. As these program vehicles are current-model-year or one-year-old models that sell for higher process than other auction sales types, not a lot should be read into these prices increases in some model class segments.

Here’s the latest edition of Kontos Kommentary

While Prices Were Strong in January Over December and January 2014:
Still need to look at underlying impact supply of off-rental and off-lease is having.

Midsize SUV and Fullsize Pickups Still Showed Price Strength:
Even after stripping off the impact of higher off-rental program vehicle sales.

CPO Sales and Other Strong Retail Demand Along with Moderate Incentives:
Have partially offset impacts for one- and three-year-old segments and used vehicle market as a whole.


Seasonal Performance Strength Offset Increased Auction Volume

Jonathan Banks
Executive Automotive Analyst
NADA Used Car Guide

NADA’s price index reached 125 in January, nearly two percentage points higher than January 2014 and it was the fifth highest figure ever recorded. Performance was solid despite rising auction volume, which reached 8% higher on a like-age basis than it was a year ago. One-year-old vehicles saw a strong volume increase – up 13,000 units (about 23%) higher than in January 214. The group, made up mainly of off-rental units, brought in 71,000 vehicles and was the highest segment among its model peers.

Here’s the February edition of NADA’s Guidelines

Wholesale Prices Began Seasonal Ascent Driven in Part by Tax Refunds:
Prices were up 0.5% over January, and tied into monthly increase seen in past 20 years.

Depreciation for Large Luxury Cars was 2.5% and Highest of All Segments:
Luxury compact cars depreciated 1.4%, and mid-size utilities dropped 1.1%.

NADA Forecasts a 1% go 1.5% Rise in Prices in February and 0.5% to 1% More in March:
Low gas prices should bring truck prices up with more muted car price growth.
Expert Video Recap
Video news that moves people and ideas
Banks_Jonathan_NADA_Skype in Feb 2015
What Dealers Should Look for in Off-Lease Vehicles

When pur­chas­ing lease returns in the whole­sale mar­ket, there’s a direct rela­tion­ship between the new vehi­cle price and the late-model used vehicle.

Video News & Opinions
Video news that moves people and ideas
Beggs_Ricky_Black Book_ Feb 16 2015
What Gas Price Increases Mean in Market

Fuel prices have gone up dur­ing tax sea­son, and what it means to used vehi­cle prices and transactions.

If you find that you received this newsletter by mistake or wish to unsubscribe to this publication, please click here to unsubscribe from the mailing list.

ADVERTISE WITH US - Contact AIN Media Publisher Chuck Parker at or (310) 265-2225 to learn more.