Pickup prices continue to be noteworthy in KAR Global’s latest wholesale data

CARMEL, Ind. – 

If Tom Kontos wanted to speak in the language of his nationality when describing wholesale prices for pickups, the KAR Global chief economist would say “idiaítera dynatós,” which is Greek for “particularly strong.”

Pickups are among the seven vehicle segments with wholesale prices at least 26% higher than a year ago, according to the August Kontos Kommentary released on Thursday.

Overall, KAR Global Analytical Services monthly analysis of wholesale used vehicle prices by vehicle model class showed that wholesale prices in August averaged $13,498 — up 0.9% compared to July, up 19.1% from pre-COVID/February and 20.1% higher than August of last year

“Wholesale used-vehicle prices continued to outperform expectations in August and well into September, especially when looked at on a year-over-year basis. On a month-over-month basis, however, August prices were fairly flat relative to July,” Kontos said.

“Weekly data on prices and conversion rates in late August and throughout September did indicate some softening in demand, and this will be explored more fully in our September report,” he continued.

“Prices for pickup trucks are particularly strong, as demand for these units exceeds both new and used supply,” Kontos went on to say.

As he does monthly, Kontos also delved deeper into 3-year-old midsize cars and midsize SUV/CUVs, using criteria that often characterize off-lease units by holding constant for sale type, model-year age, mileage and model class segment.

Kontos noted prices were up on a year-over-year basis in August for both of these segments with those midsize cars rising $1,005 or 7.9% to $13,676 and those midsize SUV/CUVs climbing $1,603 or 7.5% to $23,092.

KAR Global Wholesale Used-Vehicle Price Trends

   Average  Price    ($/Unit)  Latest  Month  Versus
   August 2020  July 2020 February 2020  August 2019  Prior Month Pre-COVID-19  Prior Year
               
 Total All Vehicles  $13,498  $13,375  $11,338  $11,244  0.9%  19.1%  20.1%
               
 Total Cars  $9.820  $9,948  $8,361  $8,465  -1.3%  17.5%  16.0%
 Compact Car  $7.243  $7,568  $6,535  $6,530  -4.3%  10.8%  10.9%
 Midsize Car  $8,385  $8,604  $7,317  $7,312  -2.5%  14.6%  14.7%
 Full-size Car  $9,752  $9,192  $7,765  $7,592  6.1%  25.6%  28.5%
 Luxury Car  $15,552  $15,808  $12.660  $13,080  -1.8%  22.6%  18.7%
 Sporty Car  $18,029  $17,658  $13,874  $14,219  2.1%  29.9%  26.8%
               
 Total Trucks  $16,066  $15,743  $13,529  $13,382  2.1%  18.8%  20.1%
 Minivan  $9,739  $9,188  $8,286  $8,118  6.0%  17.5%  20.0%
 Full-size Van  $14,632  $14,268  $13,181  $13,748  2.6%  11.0%  6.4%
 Compact SUV/CUV  $11,814  $12,197  $10,490  $10,923  -3.1%  12.6%  8.2%
 Midsize SUV/CUV  $14,833  $14,867  $12.750  $11,548  -0.2%  16.3%  28.4%
 Full-size SUV/CUV  $19,136  $18,190  $16,358  $14,248  5.2%  17.0%  34.3%
 Luxury SUV/CUV  $21,876  $21,730  $18,714  $18,465  0.7%  16.9%  18.5%
 Compact Pickup  $15,117  $14,076  $11,267  $11,080  7.4%  34.2%  36.4%
 Full-size Pickup  $21,551  $20,395  $16,385  $17,061  5.7%  31.5%  26.3%

Source: KAR Global Analytical Services.

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