STAMFORD, Conn. -
October represented a record month for used-vehicle prices, which climbed double digits from a year ago and also showed the third-strongest month-over-month upswing this year, according to RVI Group.
Not only that, but it marked the first time since April that the year-over-year upswing did not slow down from the previous month.
Explaining the robust used prices, RVI vice president Rene Abdalah boiled it down to supply remaining low and the fact that prices on the new-vehicle side “continue to inch up.”
Though the run-up in new prices was not as rapid as in previous months, the year-over-year price comparison was still positive on the new-vehicle side, he noted.
“The new-car prices are staying strong, causing used-car prices to remain at high levels,” Abdalah told Auto Remarketing on Monday.
Moving on, RVI also offered a breakdown of wholesale price activity by vehicle segments. On a month-over-month basis, 17 of 19 segments showed price gains. Full-size vans dipped 1.7 percent compared to September, and luxury coupes were static.
As for full-size vans, Abdalah noted that: “It’s just a slight correction down; it’s nothing to be concerned about.”
Regarding the luxury coupes, he explained: “It’s one of those segments that take a while to recover, both on the new-car side and used-car side.” Abdalah further noted that it is indicative of softness in demand for luxury coupes.
Leading the month-over-month gains were small pickups and compacts, each of which moved ahead 5 percent from September.
“The compacts and small pickups are just a reflection of consumer demands,” Abdalah noted.
He explained that consumers are seeking out compact cars for their strong fuel economies and are going after small pickups because of their affordability compared to other truck segments.
On a year-over-year basis, all segments were up from October 2009. Full-size vans led the year-over-year increases (up 22.4 percent).
Four of the five luxury segments, however, were only up single digits. These segments typically take longer to recover, Abdalah explained.
The one luxury segment that did show digit-digit gains was the luxury full-size sedan category, which climbed 17.9 percent from a year ago. This upswing is a reflection of this segment’s prices being exceptionally low a year ago, Abdalah shared.
New-Vehicle Trends
Moving over to the new-vehicle side, the price upswing August to September was slightly stronger than 0.1 percent. RVI said: “This has been a consistent theme since February.”
Meanwhile, the year-over-year gain in September was 2.3 percent. Explaining this increase, Abdalah pointed out that automakers have been “sticking to their guns” and not heavily incentivizing vehicles.