ADESA: Gas Prices Still Softening, Edmunds: Franchised Dealers Had Record Year February 25, 2016
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Prices Softening Even With Trucks Seeing 10.5% Increase

Tom Kontos
Executive VP & Chief Economist
ADESA Analytical Services

Truck prices carried the market higher than it might have been with dampening demand and generally softer used vehicle prices. Year over year, truck prices increased 10.5%, while car prices fell 6.3% and crossover prices fell 1.6%. With gasoline prices continuing to drop, it’s not a surprise that pickups did so well. Pickups and SUVs have been more scarce in supply, but dealers are reporting overall adequate used vehicle inventories. Additional wholesale supply is being offset by softening demand and prices fairly flat – up 0.6% over January 2015.

Here’s the latest edition of Kontos Kommentary

Every Car and Crossover Segment Saw Y-O-Y Average Price Declines:
While every truck segment except minivans saw year-over-year price increases.

Prices for Used Vehicles Remarketed by Manufacturers Down 1.6% M-O-M but Up 6.6% Y-O-Y:
Conversely, fleet/leases consigners were up 4.9% sequentially but down 0.8% annually.

Franchised Dealers Had 9.9% Y-O-Y Increase in Retail Used Vehicle Sales:
Independents were up 10.5% but both franchised and independents down 30% from December.
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2015 Saw Record Used Car Prices and Record CPO Volume

Jessica Caldwell
Director of Industry Analysis
Edmunds.com

Last year saw record used car prices at $18,600 average per vehicle sold, and an all-time high for CPO sales of 2.55 million. Overall used vehicle prices climbed 5.6% in U.S. sales last year to a total of 38.3 million units sold. The popularity of leasing has been bringing younger and higher quality used cars back to the market. With a record number of lease terminations expected in 2016, for the foreseeable future there certainly will be no shortage of supply to meet the growing demand for used cars.

Check out Edmunds’ 2015 Used Vehicle Market Report

38.2M Used Vehicles Sold in 2015 Was Highest Single Year Since 2007:
Franchised dealers had had their highest single-year record with 11.4M units sold.

Heavy Influx of Lease Returns Saw Vehicles Sold at 4.4 Years from 4.6 Years:
Transaction prices increased 4.6% from $17,700 in 2014 to $18,600 in 2015.

CPO Sales Made Up 22.4% of Franchised Dealer Used Car Sales in 2015:
That was up from 20.9% in 2014 and 18.8% in 2010 for franchised dealers.
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Kontos Kommentary – January 2016 Edition

ADESA’s Tom Kontos on how the market was bifurcated in January with wholesale prices for cars and trucks split in two.

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How Consumer Reports Rates Auto Brands

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