Kontos: Dealers doing well but supply increasing, Webb: Dealers strengthening wholesale prices August 13, 2015

Wholesale Prices See Third Straight Month of Decrease

Tom Kontos
Executive Vice President & Chief Economist
ADESA Analytical Services

Wholesale used vehicle prices are consistently feeling more downward pressure – dropping for the third straight month and falling below $10,000 for the first time this year. While dealers are doing very well in retail used vehicle sales (especially for CPO vehicles), supply growth has been high enough to keep prices down. Wholesale prices in July averaged $9,878 – down 3.3% compared to June, and up 1.4% relative to July 2014.

Check out the latest edition of Kontos Kommentary

Pickup Values Benefited from Low Fuel Prices and Went up 2.2%:
Luxury car prices took a big drop, down 9.6% month-over-month.

Prices for Used Vehicles Remarketed by OEMs Down 10.2% M-O-M:
And down 14.7% Y-O-Y, as off-rental prices taken down by abundant supply.

Franchised Dealers Had 11.6% Y-O-Y Increase in Used Vehicles Sales:
Independent dealers had 15% sales unit increase for that same time period.

Dealers Strengthened Wholesale Pricing in July

Tom Webb
Chief Economist
Cox Automotive

Wholesale prices have been stronger on the Manheim Used Vehicle Value Index lately – at 124.1 in July, the index was up from 122.7 in July 2014 and 123.9 in June 2015. With seasonally adjusted prices declining a year ago, the Index’s year-over-year change moved from -0.1% in June to +1.1% in July. Wholesale pricing is strengthened by dealers seeing higher throughput, improving efficiencies, and more income through their F&I departments.

Here’s the latest Manheim Used Vehicle Value Index

New Vehicle Transaction Prices Continued to Rise Along with Incentive Activity:
New vehicle market had net neutral influence on wholesale pricing in July.

Preliminary Estimates Suggest Used Retail Transaction Prices Rose Again:
CPO sales increased 11% in July, and went up 12.3% year-to-date.

Auction Pricing Up Y-O-Y for Both Commercially and Dealer-Consigned Units:
Dealer-consigned defied seasonal forces and increased due to lower average miles.
Expert Video Recap
Video news that moves people and ideas
Car shopping on mobile device
Reaching Millennial Car Shoppers on their Mobile Devices

Web­sites are being designed for opti­miza­tion on mobile devices, and other ways Mil­len­ni­als are redefin­ing the way brands use mobile marketing.

Video News & Opinions
Video news that moves people and ideas
Independent Dealers: How to do More Deals Now

Inde­pen­dents are ben­e­fit­ing from credit and finan­cial ser­vices like Equifax who deliver more trans­parency in con­sumer data.

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 cparker@automotivedigest.com or (310) 265-2225 to learn more.