IBJNews

Wholesale prices for used vehicles decelerate in June

Back to TopCommentsE-mailPrintBookmark and Share

The fever may be breaking in used vehicle prices, which have been high since the economy tanked more than four years ago.

Wholesale used vehicle prices fell 3.6 percent, to $9,893 on average, in June compared with the same month of 2011, according to data compiled by Tom Kontos, executive vice president of customer strategies and analytics at Carmel-based wholesale auction chain Adesa Inc.

Average wholesale used vehicle prices were $10,271 the previous month and $10,259 in the same month of 2011.

As gasoline prices moderated this year, the average paid at auction fell more dramatically for cars —by 6.9 percent—than for trucks, which were down only a half-percent, Kontos said in his June report.

In fact, prices for full-sized sport-utility vehicles were up 7.1 percent in June over the same time in 2011.

Prices for full-sized vans, favored by contractors, rose nearly 10 percent.

Showing the biggest decline in price at auction were compact cars—down 8.5 percent. Compacts had been in hot demand when gas prices spiked last year.

The recesssion resulted in fewer new car sales, thus fewer off-lease cars coming back to auction in recent years. The smaller supply led to higher prices.

Also, many consumers fearing job loss have held onto their cars longer than usual, bringing even fewer vehicles to auction.

Kontos' analysis was based on nearly 7 million sale transactions from more than 170 of the nation’s largest wholesale auto auctions, including those of Adesa.

Lower prices paid at auction don’t necessarily correlate to a lower retail price once the dealer puts a car on the lot. But the easing pricing environment might be something for consumers who’ve been gob-smacked by the price of used cars to keep in mind when negotiating.

ADVERTISEMENT

  • Agreed, these prices need to come down
    I definitely had a tough time finding a decently priced, used car a few months ago. I happened to stumble upon Hertz Car Sales which was one of the only places to give me a good price. I was curious as to the reason behind the increase in prices so thank you for sharing this article and giving an update.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

ADVERTISEMENT