Tom Kontos of Adesa reports that wholesale used vehicle prices in October averaged $9,447 -- a 3 percent decrease from September, but a 9.5 percent increase from last year's October results.
According to ADESA Analytical Services' monthly analysis of Wholesale Used Vehicle Prices by Vehicle Model Class, wholesale used vehicle prices in August averaged $9,949 -- a 0.7 percent decrease from July but a 3.9 percent increase from August 2008.
In his July commentary, Tom Kontos of Adesa says that firming used vehicle prices resulting from low trade-in supply and strong used car demand are conditions that have been in place for the entire year.
According to the report, average prices were up on a year-over-year basis for the first time since December 2007.
One would have expected lower wholesale supply and improving retail demand to have resulted in stronger wholesale prices in April. Yet many dealers are limiting their days-supply of used vehicles by keeping fewer units in inventory and turning them quicker.
Adesa reports that average auction prices rose sequentially for the fifth month in a row, though still "modestly under water" on a year-over-year basis.
Average wholesale used vehicle prices have risen by almost $750 since their trough in October, according to Adesa auction data.
Kontos says December (and early January) results appear to support the conclusion last month that “the worst may have been over [for the used vehicle market] in late-October/early November around the time of the election.”
Tom Kontos of ADESA says that the wholesale market in November was nearly as weak as October, but the worst may be over.
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