According to Tom Kontos, KAR Auction Services' chief economist, off-lease fleet vehicles sold in the wholesale market at auction fell 1% in value in June from the prior month but still increased by 7% from a year ago. Fleet lease vehicles from commercial, daily rental and government consignors sales performed better than vehicles sold in the wholesale market from manufacturers and dealers.
Manufacturer vehicles were down 2.8 percent from May but up 3.9% from a year ago, while dealer consigned vehicles fell 1.2 percent from the previous month and 4.9% from the previous year. Fleet vehicles were also out-performing the market at large as whole vehicle prices fell 2 percent to an average of $10,895 from May and are down 1.4 percent from a year ago. High Volume fleet categories such as midsize sedans and midsize SUV increased in value according to the Kontos analysis. Midsize sedans increased 4.2 percent to $11,921 and midsize SUV increased 3.3 percent to $20,564.
In the overall wholesale market, only pickup trucks and sports cars were the only cars that saw a monthly increase. Kontos analyzes vehicles from three-year-old model years between 36,000 and 45,000 miles on the odometer. "This proxy for off-lease units is showing strong price gains on a year-over-year basis, with midsize cars beginning to outperform midsize SUVs and crossovers, as the incoming supply of trucks is now outpacing that of cars," Kontos said. "The strength of these prices indicates that upstream sales are preventing an oversupply of off-lease units from reaching physical auction lots."