CARMEL, Ind. –
KAR Global shared its July wholesale price data on Thursday, reiterating how the coronavirus pandemic is making its metrics unusual compared to what dealers and consignors typically see during the summertime.
According to KAR Global Analytical Services’ monthly analysis of wholesale used vehicle prices by vehicle model class, wholesale prices in July averaged $13,375, representing a 2.6% increase compared to June and 18.0% compared to the pre-COVID-19 reading back in February.
KAR chief economist Tom Kontos also noted the July figure marked a 16.8% jump relative to the same month last year.
“The rate of increase in average wholesale prices slowed a bit in July but still represented substantial gains over pre-COVID and year-ago levels,” he said in his latest installment of the Kontos Kommentary.
“As we’ve emphasized in past editions, part of this increase is due to selling a more limited quantity and higher average quality (age, mileage, condition, size, etc.) of vehicles,” Kontos continued.
“But dealer demand, which reflects consumer demand, for used vehicles is also a key driver to higher prices. These relatively strong market conditions continued into August,” he went on to say.
When holding constant for sale type, model-year-age, mileage, and model class segment — using criteria that characterize off-lease units — Kontos also said prices rose on a year-over-year basis for midsize cars and midsize SUV/CUVs in July.
Prices for those particular cars spiked $1,186 or 9.4% year-over-year to land at $13,856, according to KAR, which also pointed out that prices for those specific SUVs and CUVs climbed $637 or 3.0% compared to a year ago to come in at $22,162.