Wholesale used vehicle prices started the year strong, with January average values up significantly over December and by double-digits in percentage terms over pre-COVID levels. These trends continued into February.
According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in January averaged $12,551 — up 5.6% compared to December, up 16.6% compared to pre-COVID/January 2019 and up 13.1% relative to January 2020, as seen in the table below.
Prices rose on a month-over-month basis for all model classes.
When holding constant for sale type, model-year-age, mileage, and model class segment — using criteria that characterize off-lease units — prices were up about seven percent on a year-over-year basis for both midsize cars and midsize SUV/CUVs in January, as seen in the following table:
The following graph shows trends in average prices by major vehicle type by week through mid-February using the same criteria:
As the graph shows, average prices have been well above year-ago levels each week since the start of the year, regardless of vehicle type. CUV/SUV prices appear to be up less dramatically than the rest of the major segments perhaps due to their relative abundance from strong new sales of these vehicles in recent years.
CPO sales were down 13.0% from the prior month and down 7.4% year-over-year in January, according to figures from Autodata. Additional retail sales trends are available via KAR Global’s Interactive Dashboards.
Source: Analysis is based on over seven million annual sales transactions from over 250 of the largest U.S. wholesale auto auctions, including those of ADESA as well as other auction companies. KAR Global Analytical Services segregates these transactions to study trends by vehicle model class, sale type, model year, etc.
Disclaimer: The views and analysis provided herein relate to the vehicle remarketing industry as a whole and may not relate directly to KAR Global. The views and analysis are not the views of KAR Global, its management or its subsidiaries; and their accuracy is not warranted.
Forward-Looking Statements: The statements contained in this report and statements that the company may make orally in connection with this report that are not historical facts (including, but not limited to, expectations, estimates, assumptions and projections regarding the industry and business) may be forward-looking statements. Words such as “should,” “may,” “will,” “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “promises”, “likely to” and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the results projected, expressed or implied by the forward-looking statements. Factors that could cause or contribute to such differences include those matters disclosed in the company’s Securities and Exchange Commission filings. The company does not undertake any obligation to update any forward-looking statements.